This article provides answers to the most common questions regarding mining with River Financial.
How do I buy a Bitcoin miner?
Currently, miners can be purchased through our Relationship Management team after joining the River Mining waitlist. If you would like to buy a Bitcoin miner, please join our waitlist. If you do not have a River account, you can open a River account to streamline the purchase process. The Relationship Management team will reach out to individuals on the waitlist as supply becomes available.
How do I pay for a Bitcoin Miner?
Bitcoin miners can be paid for via wire transfer. The hosting cost will be charged on a monthly basis once the miners are deployed. Once your purchase agreement has been signed, we will send your wire instructions via email.
How much does it cost to operate a Bitcoin miner?
The cost of operating a miner varies based on a variety of factors. With current conditions, the approximate monthly cost of operating a bitcoin miner with River Mining is $150 - $215. The total cost of mining includes the upfront cost of buying the mining machines and monthly hosting cost of running the machines.
Where does River host/store the miner?
Machines will be operational in a world class co-location facility in 2022.
What happens if my miner(s) break down?
River will oversee the miner maintenance with our co-location partners. Clients will be responsible for the cost of repairs outside of the warranty, but we will guide the repair process on your behalf.
Does my miner come with a warranty?
Each miner comes with a warranty. Many of the warranty terms vary between co-location facilities, including the miner price, hosting fee price, launch date of the Bitcoin miner, payment options, order quantities, and locations. These terms are all communicated in our terms of service and during a sales call before purchase. In the future, we hope to have standard terms and conditions.
Is mining Bitcoin profitable?
The profitability of Bitcoin mining depends on the value of Bitcoin, network difficulty, the machine's hashrate, hardware costs, and monthly hosting costs. At the time of this writing, a mining machine with a hash rate of 100 TeraHashes/second could be expected to earn ~0.02 BTC per month. For example, if bitcoin is valued at $60,000, .02 BTC equals $1,200 per month.
The return profile of a Bitcoin mining operation consists of the value of the miner’s block rewards. The value of the miner’s block rewards is based on the price of Bitcoin. Historically, the price of Bitcoin has increased faster than the growth in total network hash rate—meaning that even as a given miner’s block reward has shrunk, the USD value of that block reward has increased.
Historically, Bitcoin miners have earned more Bitcoin by mining than they would have acquired by using those resources to simply buy Bitcoin. Mining with the latest generation of mining machines has historically outperformed dollar cost averaging when taking into account capital expenditure and operating costs.
This is not financial, tax, or legal advice but instead provided for education purposes.
How many Bitcoin will I be able to mine?
The amount of Bitcoin you can mine depends on many factors, including how many miners you own and the hashrate.
Where does the Bitcoin that I mined go?
When the miners are live and operational in 2022, River clients will be able to view, track, and manage their Bitcoin miners directly in their River account. 100% of the Bitcoin mined by the miners you own will be deposited into your River account.
How is Bitcoin mined with River Mining taxed?
River Financial does not offer tax advice and recommends consulting a tax professional. For a general overview of Bitcoin mining taxes, read our River Learn article here.