How to Buy ASICs
Machines, model and suppliers
Let’s assume you’ve done your due diligence and decided to take the plunge into mining and you’re ready to buy machines.
But first a word on due diligence. There are dozens of mining profitability calculators out there and most of them only have a couple inputs. This is not representative of all the factors that contribute to mining profitability including: pool fees, transaction fees generated and network hashrate increases over time.
If you don’t understand how each of those metrics affects your profitability, you might end up disappointed or even rekt. I use Braiins Mining Insights to model the projects I’m evaluating as it’s the most robust I’ve seen.
How to decide which machine to buy?
There are a few things to consider here. First, how much are you willing to spend? New generation hardware is generally around $100/Th while older models will be around $30/Th. When you’re looking at pricing you want to think in terms of $ per terahash as this allows you to compare models with different processing power.
There are several brands who manufacture ASICs but the two most common are Bitmain and MicroBT. Bitmain is the market leader in terms of units produced by a wide margin. MicroBT is newer and making progress as their machines are known to be slightly more reliable.
New gen vs old gen
New gen machines have more processing power (greater Th/s) and are more efficient (less W/Th). In other words, they provide more hashrate with less power consumption.
The most popular models are the S19 from Bitmain and the Whatsminer M30s from MicroBT. The S19 has around 100 Th/s with power consumption ranging from 3050 to 3250 watts. The M30s line has models with around 90 Th/s with power consumption ranging from 3300 to 3400 watts.
Each manufacturer produces multiple lines of each model and they range in hashrate and efficiency. On a watts per Th basis the S19s are more efficient (34 W/Th) vs the M30s (38 W/Th) but the M30s only has two fans to cool the hash boards vs the S19 which has 4.
More fans don’t necessarily mean better cooling. In fact, more fans = more points of failure and more vibration, two things that affect uptime and lifespan.
Old gen machines like the S9 are far less efficient (100 W/Th) but are also less expensive. The cheaper they are the faster the payoff period. But there is a caveat, old gen machines like the S9 may not be profitable if bitcoin dips below $20k depending on your power costs. Old gen equipment is ideal for sites with REALLY cheap or even free power. They also generate far less bitcoin than new gen machines.
And we’re mining to generate bitcoin, right?
To sum it up, hashrate gets you more bitcoin, efficiency lowers your costs. If you’re paying residential electricity rates (8–12 cents) then you’ll want new generation hardware.
Suppliers
ASICs are mostly supplied through brokers who have connections to vendors in Hong Kong, Taiwan and China. If you’re reading this, you’re not buying directly from Bitmain or MicroBT. Typically, only the publicly traded miners are able to secure deals with the manufacturers as they’re buying tens of thousands.
You’ll be dealing with a broker, who’s dealing with a broker. There are hundreds of people in the states selling miners. Finding someone who’s trustworthy is a bit trickier. Several hosting providers require smaller orders <10 to be purchased through them, so I’m going to set them aside for this section.
Here are a couple vendors I trust:
DISCLAIMER: I haven’t purchased rigs through any of these vendors but I have spoken to each on the phone or through Zoom. They all have strong reputations in the industry.
I’ve talked to probably 20 different suppliers and they’re not all created equal. For instance, there are websites with attractive ASIC prices but when I contacted them through Telegram they were unwilling to get on a phone call. Most of the communication regarding ASICs takes place through Telegram but I don’t recommend purchasing if you can’t get the supplier on the phone.
There are machines available on Amazon and Ebay but they’re usually more expensive by about 10%. I purchased a used S9 from Ebay and it’s been running fine for months.
Do not try to buy miners through Alibaba. Their sellers display enticing prices but once tariffs and shipping are factored in (adds another 30%) they become less attractive.
Also, I wouldn’t buy S17s or T17s. These models are notorious for their inability to dissipate heat, leading to a 20%+ failure rate.
Feel free to reach out if you’ve got any questions.
Happy hashing!
