Global Titans of Crypto Mining: Unveiling Five Major Operations

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Mining stands as one of the original activities tied to the world of cryptocurrency. It all began in 2009 when Satoshi Nakamoto created the first block—the Genesis Block—on the Bitcoin network.

Today, mining has evolved into a full-fledged global industry active across 114 countries. Mining hardware continuously performs computations to maintain the smooth operation of cryptocurrency blockchain networks worldwide. According to data from Blockchain.info, the mining industry’s total revenue reached approximately $4.1 billion last year. This figure does not include income from mining hardware sales, which is projected to reach $3.4 billion, as evidenced by industry giants like Bitmain.

Key mining industry metrics include:

The Bitcoin Network Evolution

As mining activity has grown, so has the difficulty of mining Bitcoin. Although 80% of all Bitcoin has already been mined, experts suggest the final coin won't be mined until 2140. This extended timeline results from the increasing complexity of the computations required for cryptocurrency mining, demanding more time and greater energy consumption.

Between 30% and 60% of mining profits are typically allocated to electricity costs. Research indicates that powering all operational Bitcoin miners would require the full output of 30 nuclear reactors running at maximum capacity.

Shifting Rewards and Sustained Profitability

Despite the block reward decreasing from 25 to 12.5 Bitcoin and the continuous rise in mining difficulty, miners still earn up to $20 million per day from transaction confirmations. This substantial income continues to attract new participants to this "digital gold rush," while hardware manufacturers develop increasingly efficient methods to mine Bitcoin.

The Hardware Landscape

During the summer of 2017, as cryptocurrencies gained popularity, demand for specialized mining equipment and graphics cards surged. Jon Peddie Research reported that over three million standalone graphics cards, valued at more than $776 million, were sold in 2017 alone. High-end graphics cards were often sold out before even reaching retailers, as miners purchased them in bulk. This demand significantly boosted profits for GPU manufacturers AMD and NVIDIA.

NVIDIA's Q2 2017 revenue increased by over 50% compared to the same period in 2016, reaching $251 million. Similarly, AMD's revenue grew by 18%, totaling $1.2 billion. However, with the recent decline in cryptocurrency market prices, interest in mining has waned, and both AMD and NVIDIA anticipate lower revenues for Q2 2018.

The Rise of Industrial-Scale Mining

Mining has rapidly industrialized. Around the world, miners have united to form pools and large-scale farms, where thousands of graphics cards combine to form immense computational power. Some companies have repurposed old factories, investing millions into building advanced mining infrastructures.

On June 6, mining firm CoinMint announced plans to convert a former aluminum plant in upstate New York, near the U.S.-Canada border, into a Bitcoin mining facility. With support from the U.S. government, CoinMint aims to create 150 jobs within 18 months and invest $70 million in redeveloping the 1,300-acre facility.

Larger enterprises are exploring even more innovative methods to reduce energy costs and enhance productivity—from locating mines in caves to even sending miners into space. The creativity is boundless. So who are these industrial-scale miners? Below, we explore five of the world’s most significant mining operations.

GigaWatt

In young and profitable industries, new players often emerge from unexpected backgrounds. Today’s Bitcoin billionaires might have been repairing computers or working in tech stores until recently. Dave Carlson is one such individual. He started mining with ordinary graphics cards and now owns one of North America's largest mining farms.

A software expert and entrepreneur with a decade of experience, Carlson turned to mining after facing financial challenges in his previous advertising business. In 2012, he launched MegaBigPower (later renamed GigaWatt) from his basement. Within a year, the operation grew into a multi-million-dollar enterprise.

The mining facility now occupies a former industrial plant, though its exact location remains undisclosed. Like many mining operations, Carlson prefers to avoid drawing excessive attention from government authorities.

With the company’s expansion, Carlson estimates monthly operational costs—including salaries for 15 employees—exceed $1 million. He states that the 1.3 PH/s hash rate is sufficient to cover these expenses. After attracting further investment, he began producing mining equipment based on Bitfury chips, selling them to other Bitcoin enthusiasts.

Carlson attributes his success not only to his determination to escape financial hardship but also to access to affordable electricity. Washington State offers some of the cheapest electricity rates in the U.S., with residential prices at $0.0956 per kWh and commercial rates at $0.0842 per kWh.

Genesis Mining

Another major player is Genesis Mining. Initially operating in Bosnia and China, the company now focuses its efforts in Iceland and Canada. The combination of cold climates and low electricity prices makes these countries attractive for mining.

Genesis Mining is believed to be one of Iceland’s largest electricity consumers. Details regarding power consumption and cooling systems are often kept confidential, and the exact locations of such farms are rarely disclosed due to security policies.

Dalian Mining Farm

China is known for its numerous factories producing graphics cards and ASIC miners. As a result, Chinese miners benefit from lower equipment prices and reduced—or even free—shipping costs.

China also boasts some of the lowest electricity rates globally, alongside countries like Venezuela, Taiwan, and Ukraine. Its large population leads to competitive employment opportunities. In industrial cities, many workers reside in company-provided dormitories, and mining farms are no exception. Technicians often live on-site to ensure uninterrupted cryptocurrency production, accepting relatively modest wages.

These conditions create a fertile environment for large-scale mining operations. Dalian, in Liaoning Province, serves as a cryptocurrency mining hub for China and the world. The three-story facility features a custom-designed ventilation system and currently accounts for over 3% of the total Bitcoin network hash rate.

Sichuan Province hosts another industrial-scale mining farm near a hydroelectric power station. Since 2016, its computational power has nearly tripled, reaching 12 PH/s. Other Chinese provinces also host significant mining operations, often identifiable by piles of discarded mining hardware nearby.

Swiss Mining Farm

Switzerland’s largest cryptocurrency mine is located in the small village of Linthal in the east of the country. The owner, Guido Rudolphi, previously operated a mine in Zurich but found it too costly. After nearly two years of searching, he settled in Linthal for its attractive electricity rates.

Housed in a repurposed factory building, the mine is considered the largest in Switzerland. Although cooling the processors remains challenging, Rudolphi insists that financial gain is not his sole motivation. He believes Bitcoin is politically important, comparing cryptocurrencies to the internet in the 1990s—a innovation initially met with skepticism.

Russian Mining Farm

Russia is also home to several large mining farms. The largest is believed to be near Moscow, though its exact location remains unknown. The Moscow facility uses 3,000 Antminer S9 machines to produce approximately 600 Bitcoin per month.

The operation employs modern cooling systems from Iceland to manage heat output. According to Slavorum.org, the monthly electricity cost exceeds $120,000.

The Future of Mining

Large-scale mining farms only began emerging a few years ago. In 2014, most were small setups run by cryptocurrency enthusiasts. Today, they constitute major technical infrastructures staffed by professionals. Operations like GigaWatt, Genesis Mining, and CoinMint have repurposed old factories into high-tech mines.

As Bitcoin mining difficulty increases and prices fluctuate, individual miners may leave the industry. However, those who succeed in deploying large-scale infrastructure will likely achieve an optimal balance between productivity and low operating costs.

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Frequently Asked Questions

What is cryptocurrency mining?
Mining involves using computational power to validate transactions and secure a blockchain network. Miners are rewarded with new coins and transaction fees for their contributions.

Why is electricity cost important in mining?
Electricity can consume 30–60% of a miner’s revenue. Operations in regions with low energy rates gain a significant competitive advantage.

How has mining evolved over the years?
Mining has shifted from individual enthusiasts using GPUs to industrial-scale facilities with specialized ASIC hardware and customized cooling systems.

What are the environmental impacts of large mining farms?
Large farms consume substantial electricity, often drawing criticism regarding sustainability. Some operators use renewable energy or locate in cold climates to reduce cooling needs.

Can individuals still profit from Bitcoin mining?
Solo mining is rarely profitable due to high hardware and energy costs. Most individuals now join mining pools or cloud mining services.

What challenges do mining operations face?
Key challenges include rising energy costs, hardware obsolescence, regulatory uncertainty, and network difficulty adjustments.