It's been a couple of weeks since we've emailed out an update. That's my fault, as I've been in the process of moving from Dallas to Houston and things have been quite hectic, to say the least. But I am all settled in now, and thought I'd get everyone up to speed. To start, I'll recap the process of how Mining Syndicate came to be, as it's very relevant to where we are today.
How It All Began
We have been in crypto for 5 years and mining since this summer. But Mining Syndicate was officially born on October 1st, 2021. This was the day that we purchased a 2.5MW mining farm from a private seller in the DFW area. Before October 1st, it was simply a rented warehouse space with 300 S9s that were hashing for 1 private owner.
There was no business or employees to speak of. If you crunch the numbers, 300 S9s is only a small fraction of the 2.5MW total capacity. Our goal was to make full use of the 2.5MW by hosting our own and others' newer model miners.
We started selling hosting reservations and replacing the 300 S9s with hosted miners, but we soon hit some roadblocks, namely:
1. Space Constraints
Physical space constraints - it's not a large warehouse. Most warehouses with 2.5+MW of power are over 100,000 square feet. Ours is ~4,000.
2. Airflow Constraints
Airflow constraints - 300 S9s or ~125 S19s was the max capacity that existing airflow could handle, even though the power allowed for ~650 S19s. One of the first things we did was place orders for custom-built fans to solve this problem.
3. Frequent Trips
Older 60 AMP breakers that trip more frequently than we'd like.
4. Lack of Switchgear
Not enough switchgear to make full use of the 2.5MW transformer.
We knew most of these constraints on October 1st, as we had done our due diligence, so we set out on getting them solved ASAP. Since that date we have successfully:
- Installed 4x new 40,000 CFM fans in the wall and ceiling, with more on the way.
- Negotiated a buyout of our neighbor's lease to make for more physical space. This is still in progress.
- Ordered updated breakers.
- Had new miner panels custom built - some are done and some are still being built.
- Coordinated with countless contractors for buildout specs.
Phase 1 refers to replacing the 300 S9s with hosted miners. That is full and has been since October. We have actually unplugged each and every one of our own miners to make room for yours.
Phase 2 refers to making full use of the 2.5MW via the changes outlined above. That is still ongoing and we are plugging in miners every week on a rolling basis. It is very hard to pin down exactly how many miners we can plug in by exactly what date due to how many variables we are juggling that are out of our control.
We are prioritizing people that booked hosting reservations the earliest.
Phase 3 refers to a new facility altogether, which is still ongoing as well. We expect Phase 3 to be much bigger than the first two phases combined, and is on track for a late January deployment.
We hope and expect to not be space constrained by the end of Q1 2022. We also expect hosting prices to come down significantly, and unlike your cable provider, we won't give sweetheart deals only to new customers.
You will not be punished through the end of your contract for working with us in Phases 1 and 2. We'll work out a system that is fair to everyone.
We have been slowly dropping miner prices on the site as they come down for us.
Unfortunately, we have not seen drastic miner price drops as we'd like to see with the BTC price drop we've seen. Manufacturers have been very slow to drop prices for us, so we're doing what we can every day or two.
If we do see a significant price drop, we'll send an email about it. Otherwise, just check back in the mornings to look for incremental drops in the miner you've been eyeing.
The legendary YouTuber VoskCoin made an awesome video about ASICs featuring one of our miners! You can check that out here. He has more subscribers than any other miner YouTuber.
Below are some pics of how Phase 2 is coming along. We converted one of our bay doors into fans, and we think it looks pretty cool.
As always, feel free to schedule a call with us at the link below. And feel free to stop by for a site visit on a Friday sometime in the future. Just not this Friday, due to the holiday.
Thank you for your continued patience and support. We'll keep working as fast as we can on Phases 2 and 3 and do our best to update you on at least a weekly basis. Please let us know if you have any questions, our team is always here to help with any problem, question, or query you have.
SHOP HERE - here, you’ll find a list of our bestsellers as well as the other miners we have in stock. We have a fantastic range of high-power miners that suit all budgets. Don’t forget, we’re here to enable mining for even the little guy, so get involved and change your future.