BTC Mining Power Needs - The Numbers from the HOA debunked

I thought I'd save us the brain power and get the numbers conversation started.

**DISCLAIMER: THIS DOES NOT CONSTITUTE FINANCIAL ADVICE. PLEASE DYOR BEFORE INVESTING**

From the latest announcement..

So a 400mcf/day unit will generate between $30k to $60k per month i.e. $360k to $720k annually.

Per the annnouncement, there are already 2 such generators secured, so that's about $720k to $1.4m annually from these 2 units.

There are plans in place to scale up to power bigger units that require up to 5000mcf/day. Top side, for each of these units, it'll generate between $375k to $750k monthly, i.e. $4.5m to $9.5m annually.

What I'm getting from this, is that on AXP's side, we'd be getting $75 per 1 mcf/day supplied. (1mcf is 1000 cubic feet)

Here's where the maths gets juicy.

From ycombinator, I found this:

"A current ASIC bitcoin miner will do 90 Terahashes per second (1 Terahash = 1 trillion hashes) while consuming 3420 Watts which is equivalent to 38 Watts per Terahash (38 W/TH)"

So per 1 terahash, you require 38 watts of power.

From Elite Mining Inc's Website...

So on their BTC mining ops alone, they report a hashrate of 2200 terahashes/second.

Using the conversion above, it works out to 83600 watts/second. If they're running these units 24/7, you're looking at

83600 watts x 60 x 60 x 24 x 7 = 50,561,280,000 watts of power a week.

In terms of kilowatt hours (kWh), that's 50,561,280 kWh weekly.

EMI says that their operations are in Wyoming and Washington.

In Wyoming, the average price per kWh is US$0.1047, and in Washington US$0.0976. So let's use the mean price of US0.10115/kWh

Their power bill on the BTC mining ops alone would be 50,561,280 kWh x US0.10115/kWh = US$5,114,273 EVERY WEEK.

For EMI to be parternering with AXP, I'm assuming that on a kWh basis, AXP's pricing is much more competitive.

I won't be surprised if there is a plan in place to scale up AXP's operations so that EMI can scale up their reliance on AXP's stranded gas to reduce their power bill significantly.

So assuming a 20% discount because they are using stranded gas for power generation, that's roughly US$4m per week that EMI would stand to pay if EMI transitioned their BTC mining ops power needs all to AXP.

The bottom line.

50,561,280 kWh weekly works out to 172,522.248 mcf of gas weekly.

If we stood to make $75 revenue per mcf, then EMI's BTC operations, top side, would make us about US$13m a week.
That is US$673m per year.
Convert that to AUD, and you're looking at about A$918m annually.

At about 4.6b SOI and an SP of A$0.007, we entered the trading suspension at a market cap of A$32m

I'd say that a significant material re-rating is on the cards on open.