Compass Mining has launched a service that allows customers to buy bitcoin mining equipment for their home instead of paying remote hosting facility fees to mine $BTC.
Compass Mining, founded in 2020, is a bitcoin-first company that seeks to support the decentralized growth of hashrate, which is critical for network security. The company assists customers in purchasing, shipping, and installing mining hardware, as well as arranging for it to be hosted at mining facilities with favorable power rates.
Compass received $1.7 million in seed funding in March from Galaxy Digital, CoinFund, and CoinShares.
The company’s most recent service brings application-specific integrated circuit, or ASIC, mining machines to customers’ doorsteps. Bitmain’s Antminer S19 and MicroBT’s Whatsminer M30S are available from Compass, and orders are shipped within two weeks.
The machines on Compass’s website range in price from $8,200 to $10,400. The new offering comes at a time when hashrate has been recovering after a sharp drop caused by a sudden exodus of mining operations from China to the rest of the world, including North America.
Are retail customers able to compete?
“While industrial mining operations and retail miners primarily use Compass to secure space in one of our 23 hosting facilities around the world, we have discovered that there is significant interest from our customer base to set up operations in their own home,” said Compass Mining CEO Whitney Gibbs in a statement.
Since the introduction of ASIC mining machines in 2012, large corporations with hundreds of thousands of machines have dominated the market, according to the firm.
A surge in at-home mining interest coincided with a surge in general demand for cryptocurrency mining products and services from retail clients this year, according to a spokesperson for Blockworks, who added that mining profitability is near record levels. This is despite the fact that ASICs typically have a lifecycle of only 2-4 years before they wear out or require upgrades due to advancements in mining technology.
The representative added that Compass hosts thousands of machines at its two dozen or so mining farms around the world, with power costs that are generally much lower than North American residential power costs. At-home miners typically pay higher electricity rates than Compass miners, and profitability calculators are available online for them to model their potential revenue, costs, and profit.
Compass, unlike some of its competitors, does not manufacture its own mining hardware. Coinmine, for example, provides a cryptocurrency device that can be configured from any iOS or Android device and run anywhere there is a wifi connection. The machine is capable of mining cryptocurrencies and storing them in a user’s in-app digital wallet.