How to Start a Small-Scale Bitcoin Mining Business in 2025 | Coin Miner Blog

TL;DR

• Start with a clear power plan (¢/kWh, TOU windows, demand charges) and an efficiency floor for rigs (low J/TH).

• Model at least three difficulty paths and two BTC price paths—buy only what clears your IRR hurdle.

• Keep overhead low: target PUE ≤ 1.15 (air) or ≤ 1.10 (immersion) and automate dispatch/curtailment.

• Grow in modular steps (3–10 kW → 30 kW → 100 kW) so you can scale or relocate with the market.

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1) Define your scope (right-size the dream)

• Home/Hobby (3–10 kW): 1–3 rigs, ducted air or small immersion tank, residential TOU tariff.

• Prosumer (10–30 kW): dedicated room/garage, upgraded service, stronger noise/heat controls.

• Micro-warehouse (30–100 kW): small lease, 3-phase power, commercial tariff, simple EMS.

Pick the tier that fits your power access, noise tolerance, and budget—then plan to step up one tier if the numbers hold.

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2) Power first: know your real cost

Your all-in power cost drives everything.

• Energy charge (¢/kWh) × kWh used

• Demand charge ($/kW) based on your peak 15–30 min load (commercial)

• Network/retail fees + metering + taxes (where applicable)

• TOU windows: off-peak, shoulder, peak

Breakeven electricity price (daily view):

$$c_e^{*}=\frac{\text{Revenue} - \text{Fees}}{(\,P_{IT}+P_{aux}\,) \times 24}$$

If your tariff $c_e$ is below $c_e^{*}$, you’re in business. If not, fix power before buying rigs.

👉 Run scenarios with the Coin Miner Bitcoin Mining Calculator:
/pages/bitcoin-mining-calculator

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3) Choose hardware the right way (J/TH > TH/s)

• Prioritize efficiency (J/TH) over headline TH/s; efficient rigs hold margin as difficulty rises.

• Compare wattage, noise, and cooling needs (air vs immersion readiness).

• Standardize models where you can—simplifies spares, firmware, and tuning.

• Avoid “bargain” used gear that fails your ¢/kWh and uptime reality.

Browse current options: /collections/bitcoin-miners

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4) Cooling & acoustics (your neighbors will thank you)

Air (fastest/cheapest)

• Straight intake → exhaust path, sealed bypasses

• Variable-speed fans and quality filters

• Duct noise to the roof or a baffled wall; aim for < 50–60 dBA at the boundary (local rules vary)

Immersion (quiet, stable, upgradable)

• Higher capex, lower noise, steady temps

• Targets PUE ≤ 1.10–1.12 with well-sized dry coolers

• Easiest path to heat reuse (DHW/greenhouse)

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5) Quick setup blueprint (small site)

1. Power: verify service amps/phase, breakers, and receptacles; install a main kW cap in your EMS.

2. Rack/ducts or tank: lay out airflow or immersion manifold and dry cooler.

3. Network: reliable router + switch, LTE failover, pool allowlists.

4. Safety: fire rating, egress, earthing; spill tray/MSDS if immersion.

5. Monitoring: temps, kW, hashrate, pool shares, fan/pump RPM, breaker trips.

6. Pool config: 2+ pools or multiple endpoints for failover.

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6) Profit model you can paste into a sheet

Let:

• $H$ = fleet hashrate (TH/s)

• $r$ = BTC earned per TH/day (from current difficulty; see calculator)

• $P_{IT}$ = IT power (kW)

• $P_{aux}$ = auxiliary power (kW)

• $c_e$ = electricity price (¢/kWh)

• $p$ = BTC price (AUD or USD)

• $f$ = pool + ops fee (as % of revenue)

Daily BTC: $BTC\_{day}=H \times r$
Daily revenue (fiat): $Rev=BTC\_{day}\times p \times (1-f)$
Daily power cost: $Power=(P_{IT}+P_{aux})\times 24 \times c_e$
Gross profit: $Gross=Rev - Power$

Stress test with difficulty +2%, +5%, +10%/retarget and two BTC paths (base and –20%). Buy only if your payback and IRR still work.

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7) Dispatch & demand management (the secret sauce)

• TOU shift: schedule hashrate heavier in off-peak windows.

• Curtailment: turn down during price spikes/demand events to avoid painful ratchets.

• Auto-tune/undervolt: find the profit max, not the hashrate max.

• Hysteresis: add a 5–10% buffer to stop on/off flapping.

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8) Budgeting (illustrative ranges only)

• Rigs: dominant capex—varies by model and cycle.

• Electrical works: panels, breakers, receptacles, labor.

• Cooling: ducting/fans or immersion tank + fluid + dry cooler.

• Networking + EMS: router, switch, sensors, control box.

• Contingency (10–15%) for “unknowns” (noise baffles, extra cabling).

Keep your first build modular so you can resell or relocate with minimal sunk cost.

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9) Ops, maintenance, and KPI pack

• Weekly: dust control, filter swap, firmware checks.

• Monthly: thermal scan panel, tighten lugs, review PUE & peak kW, pool fee audit.

• Quarterly: hashboard health audit, fan/pump replacements, ROI checkpoint.

• KPIs: PUE, uptime, peak kW, curtailed hours, BTC/TH/day, $/TH.

Link these to your decisions: if PUE drifts +0.05, fix airflow or service pumps.

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10) Structure, accounting & compliance (non-legal guidance)

• Business basics: ABN/company setup (or local equivalent), business bank account, insurance.

• Accounting: treat rigs as depreciable assets; track parts inventory and maintenance.

• Local rules: electrical compliance, noise limits, waste/e-waste handling; ask your council/utility about any permits.

• Data & security: cameras, access control, off-site config backups.

(This is not legal/financial advice—confirm requirements with a qualified pro in your jurisdiction.)

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Common pitfalls (and fixes)

• Buying on hype → Run your sheet with harsh difficulty and price paths first.

• Ignoring demand charges → Cap site kW, sequence warm-starts after outages.

• Under-cooling → Derates and downtime kill ROI; size cooling for hottest week.

• No spare parts → Keep fans, PSUs, and a known-good hashboard on hand.

• Noise blowback → Baffles/ducts early; don’t wait for a complaint.

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Growth path (when it works)

1. Prove unit economics at 3–10 kW.

2. Expand to 30 kW with standardized rigs and automation.

3. Evaluate 100 kW micro-warehouse or hosted capacity to diversify power risk.

4. Consider immersion once density/noise justify the capex.