How to Build a Bitcoin Mining Farm?

Building a crypto mining farm is an attractive solution for investors interested in cryptocurrencies. However, it requires a considerable commitment in terms of time and money. Therefore, you need to fully understand all the nuances surrounding this topic before getting started. In this article, we will review the essential elements for setting up a farm dedicated to bitcoin mining. Then, we will show you how to maintain it to get the most out of it in the long term. Finally, we will discuss the best locations to start such a project as well as the costs associated with this type of installation.

What are the main components of a Bitcoin mining farm?

Crypto mining operations have various types of equipment. These can be grouped into five major categories: mining equipment, electrical installation, network infrastructure, cooling and ventilation system, and setup.

Cryptocurrency mining equipment

To build a Bitcoin mining operation, you need specialized mining equipment called mining rigs. The market is full of a variety of solutions.

Notably, there are ASIC-based rigs, FPGA circuits, and graphics cards (GPU). CPUs are not really an option in this context, as they are very limited in processing power. However, due to their high processing capacity, ASIC rigs seem to be the most relevant equipment.

That said, the nature of the equipment is not everything. You must choose a powerful, robust, and reliable model. To do this, it is important to research as much as possible about existing proposals and the performance each offers. Remember that it is preferable to always prioritize quality over quantity.

Electrical installation

Regarding energy, the transformer is the most important element for a crypto farm. It converts the high-voltage electricity produced by the electrical substation into domestic current to power the mining machines. It is advisable to minimize the distance between the machine room and the transformer to limit electricity losses in the transmission cables.

In addition to the transformer, the electrical setup for a mining operation includes:

• High and low voltage electrical cabinets: these devices distribute electricity with suitable power for the system receiving it;
• Circuit breakers, which protect the installation against overcurrents and short circuits;
• Wires and cables, which carry the current from the electrical cabinets to the inside of the farm.

To limit risks (fire, electrocution, etc.), it is highly recommended to call a professional. They will size your electrical installation according to the size of your operation.

Computer network

This is an essential component for a mining farm because it ensures the pooling of IT resources (intranet side) and allows connection to the blockchain (internet side).

Without Internet, miners cannot know what users’ requests are or what tasks are assigned to them by the mining pool they belong to. That’s why farms need a stable and fast Internet connection.

In general, they use dedicated networks with a bandwidth of 100 Mbit/s in and out. That said, it is advisable to use wired connections, as wifi offers less stability and is more prone to disconnections.

As for the Internet network, you need to sign a contract with an internet service provider. You will also need to buy computers, routers, switches, hubs, repeaters, racks, cables, and network connectors.

Cooling and ventilation system

Cryptocurrency mining rigs generate heat during operation. This can cause significant material damage and reduce efficiency.

On the farm scale

Bitcoin farms dissipate this thermal energy in the following way.

On the one hand, the ventilation system allows heat to be evacuated outside. It also ensures the removal of dust and other debris. Farms use negative pressure fans. They are usually mounted on the air outlet wall. The number of fans to be provided is proportional to the number of mining devices.

On the other hand, the cooling system regulates the temperature inside the room. Generally, Bitcoin mining farms have a water cooling pad on the air intake side. To ensure that the cooling pad can cool the intake air, it is recommended to make sure that the water flows through it evenly.

Note: For small-scale operations (less than ten devices), domestic air conditioners offer satisfactory cooling results.

On the mining device scale

To cool the miners, several solutions are possible:

• Air cooling: This type of system can be found in the computing devices we use daily (computers, game consoles, etc.). It consists of constantly ventilating the circuits and components to cool them. Although it works well, this technique is not suitable for large-scale operations,
• Water cooling (or liquid cooling): This approach involves using water to lower machine temperatures. More effective than air cooling, it improves device performance, generates less noise, and takes up less space.

• Immersion cooling: This process is more recent than the previous two. The idea is to immerse the miners in a liquid that will carry the thermal energy away from the equipment. Despite its undeniable capabilities in heat rejection, it is more expensive. Additionally, it is difficult to implement over a large area and causes more maintenance time.

Layout

Naturally, before building a mining platform, you need to prepare the room that will host all the equipment. To promote air circulation and reduce floor space, mining platforms generally have high ceilings. Warehouses for industrial use are ideal for this type of installation.

You also need to plan for offices and living spaces dedicated to maintenance and operation staff.

Among other imperatives are shelves, which will be used to store mining devices. There are two main ways to organize them:

• Single-row arrangement: On one side of the room are water cooling pads, and on the other, negative pressure fans. Between them are the shelves. They are positioned so that the heat generated by the machines located at the front (closest to the pad) can affect the cooling of the machines located at the back,
• Double-row arrangement: Here, the devices are arranged so that the heat emanating from them is concentrated in the space separating each set of two shelves. Negative pressure fans are placed above this surface to evacuate the heat.

Still in terms of setup, some countries are more favorable than others for hosting cryptocurrency mining platforms. These include Canada, Russia, Iceland, and the United States.

These countries are particularly attractive for miners because they provide very cheap electricity and have regions where temperatures are very low. These conditions are ideal for cryptocurrency mining equipment.

How are Bitcoin mining farms maintained?

The maintenance of a Bitcoin farm is carried out on two levels: hardware and software.

Hardware Maintenance

It includes all aspects related to the maintenance of the infrastructure. Poorly maintained installations cannot function optimally. It is therefore crucial to take care of them. Here are some measures to take:

1. Maintain mining hardware at a moderate temperature

In a Bitcoin mining farm, it is essential to prevent equipment degradation. However, the hot airflow they emit can cause damage to electronic components, which will reduce the hash rate and limit the lifespan of the devices.

It is recommended to keep the machinery room at a temperature between 5 and 35°C.

2. Dust regularly

Dusting is a subject that deserves special attention, as dirt can impair system performance. Systematically removing dust deposits helps prevent the risk of overheating.

For this, it is generally not necessary to shut down the miners. Simply give them a few puffs of compressed air every two months. However, if the dust is too embedded, it is better to disconnect the device and disassemble the internal fan before sweeping away the dust.

3. Prevent disconnection issues

Crypto mining farms sometimes face recurring disconnection issues. This also affects the lifespan of the devices, as it forces them to switch to emergency shutdown mode.

To prevent this, certain measures should be adopted, notably:

• configure a secondary high-speed Internet network,
• provide an alternative power source,
• conduct regular network infrastructure inspections,
• ensure spare parts for each device.

4. Monitor energy security

Here more than elsewhere, caution is paramount. Ensure that electrical installations remain in good condition. For example, factors such as oxidation or rodent attacks can damage transmission cables.

Additionally, to preserve the integrity of mining equipment, the energy needs of the miners must be respected. It is essential to provide a satisfactory response in both qualitative and quantitative terms regarding voltage or frequency.

Most importantly, ensure the supply process is well secured in terms of electricity. Generally, taking into account best practices and safety standards in energy matters, can reduce risks and prevent accidents.

5. Conduct regular inspections

Indeed, the entire system must undergo constant verification. This involves checking cooling and ventilation systems, junction points between materials, fire prevention devices, sealing systems, lightning protection mechanisms, flood prevention devices, oil levels, etc.

Software Maintenance

Here, it involves performing maintenance operations on the software layer. The steps to adopt can include:

• performing periodic updates,
• implementing a rights and access management system,
• installing monitoring software to track real-time performance,
• deploying the latest firmware version for each mining device,
• resetting equipment when necessary,
• changing mining pools as needed,
• installing firewalls to prevent access to malicious sites,
• using antivirus software to prevent cyber attacks, etc.

What is the cost of such an installation?

The construction of a Bitcoin mining farm can be an expensive venture. Depending on the desired configuration, the cost can vary significantly.

The first expense is the equipment used for mining. Pricing scales differ greatly from one manufacturer to another. Additionally, they take into account the computing performance offered.

Energy consumption is the second major source of expense. It encompasses both the cost of the electrical consumption required to power the devices and the costs associated with cooling the operation.

That said, the overall bill is determined by integrating parameters such as installation and maintenance costs, Internet connection, paid software, and hardware renewal.

Conclusion

The construction of a Bitcoin mining farm is complex. It requires careful planning, significant investment, and extensive knowledge of the field. However, with good preparation, effective management, and constant attention to detail, you can achieve substantial profits.

La Rédaction C.

L'équipe éditoriale de Cointribune unit ses voix pour s’exprimer sur des thématiques propres aux cryptomonnaies, à l'investissement, au métaverse et aux NFT, tout en s’efforçant de répondre au mieux à vos interrogations.