The World’s First $1 Million Bitcoin Mining Auction

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A bitcoin mining company just sold more than $1,000,000 worth of hardware. ASICMiner is a publicly traded bitcoin company that both operates and sells bitcoin mining hardware. In their latest auction they successfully sold 180 ASIC mining blades for 49.99 bitcoins (BTC) each. This totals 9,000 BTC and with a current exchange rate of $117 per bitcoin, that is over $1,050,000. Each of these cards run at 10 GH/s, and require some technical sophistication to run, so they’re not for amateur miners.

The $1 milllion hardware – ASIC blades

The record-breaking auction is the largest in bitcoin history and was the third auction by ASICMiner over the last month. Their first auction sold 10 miners for a total 752 BTC ($88,000), and the second auction sold 50 miners for a total of 2578 BTC ($300,000). Given the massive computing scale of the bitcoin network, it is no surprise that so much money is being dumped into the mining race.

Bitcoin mining difficulty over the last year

At current difficulty levels these would return an estimated 0.45 BTC per day, equating to a minimum of 110 days to break even. Winners should receive their hardware and be able to start mining almost immediately. ASICMiner has shipped most of the previous blades in less than 1 week and there is no reason to think this will be any different. However, the biggest question is how long the rapid increase in mining difficulty will continue, and with so many more ASIC miners coming online shortly it will be a major concern.

asic_miner_usb

ASICMiner’s usb-powered bitcoin miner. It runs at 300 MH/s and will sell for 1.99 BTC.

Selling ASIC hardware should turn out to be a fairly regular revenue source for ASICMiner share holders. Friedcat, the CEO, announced two weeks ago that they would be selling usb-powered mining devices for 1.99 BTC each. There is clearly a lot of demand for bitcoin mining hardware. The question in any gold rush is who will do better: the people mining, or the people selling the shovels? ASICMiner decided they can do both.

 

 

Disclaimer: The author of this article owns shares in ASICMINER. Opinions in this post are those of the author only and should not be considered as investment advice.

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About the author  ⁄ Phillip Archer

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