A full review of the 619 Bitmain closed-door meeting

Recently, Bitmain held a closed-door meeting on the topic of why and what. The editor has compiled the main content of the meeting for reference for miners who were unable to attend the meeting.

1. Bitmain’s overseas cooperation model

1. Responsible for helping customers find hosting loads. Bitmain is responsible for the commercial and legal negotiations of pure hosting projects to strive for more favorable terms, and after signing the contract, it will be handed over to the project provider for operation;

2. Companies with rich experience in mining operations can connect with Bitmain to undertake specific high-quality projects;

3. Joint construction of high-quality bare electricity resources: Mainland China holds 5-20% of the shares;

4. Provide mining machine operation, maintenance and guarantee services to customers in need;

5. Support and encourage customers to invest in new mining farms. If support is needed, Bitmain can participate in the investment: For funds planned to be invested in mining farms, Bitmain can open up investor channels; for project parties planning to build mining farms, Bitmain can match high-quality investors.

2. Bitmain’s Advantages

1. The company structure complies with legal regulations and the tax settings are rigorous and reasonable;

2. China's electrical equipment exports have complete certification qualifications, and the price and delivery time are more competitive;

3. Export operation and maintenance personnel overseas;

4. Leading high-quality projects;

5. Promote green energy;

6. Maintenance: Promote the construction of local authorized maintenance centers and cooperative maintenance points in North America to solve the after-sales problems of local mines;

7. Training: Combine maintenance training with operation and maintenance training, issue certificates, and train thousands of professional engineers in North America within 2 years (mine operation and maintenance training mainly includes several contents: mining machine unloading and unloading, mining machine configuration, daily operation and maintenance SOP, plant environment maintenance SOP, mining machine fault troubleshooting and handling, mine management, electrical operation and maintenance, operation and maintenance internship, network planning, and safety matters);

8. Professional due diligence: leverage the platform's advantages to screen and lead investment in high-quality projects;

9. HUB warehouse construction: When customers have problems with their mining machines in North America, they can ship them to Hong Kong for repair through a certain mechanism, and at the same time, mainland China will ship high-quality mining machines from Hong Kong to customers, with the delivery time as low as 4 days;

10. Legal advisor support: cooperate with local professional law firms, no worries;

11. Platform attributes: The platform is reliable and links global high-quality resources;

3. Mining in North America

1. SWOT analysis of North American mining

Advantages: Compared with domestic purchases, purchasing mining machines in North America saves 13% of taxes; the cost of bare electricity in North America is low, and the trusteeship profit can reach 2 cents per kilowatt-hour; stable policies are conducive to long-term development; the United States has abundant and cheap clean energy; the United States has sound laws, safety and compliance; North America has a relatively mature mining machine circulation market;

Disadvantages: High infrastructure and labor costs, about five times that of China; insufficient number of professional operation and maintenance personnel; low efficiency compared with domestic;

Opportunities: Window period and first-mover advantage;

Threats: Local project owners raise the price on the spot; I am not familiar with the resources and I am afraid of falling into traps; I lack understanding of local finance and tax laws;

2. Other situations of mining in North America

In 2020, the total electricity generation in the United States was 3.9 trillion kWh, and that in China was 7.4 trillion kWh. The proportion of electricity generation in the United States was: natural gas 40%, nuclear power 20%, coal 19%, and renewable energy 21%.

There are more than 3,000 power companies in the United States. Private power companies dominate, owning 80% of power generation, transmission and distribution equipment, and providing electricity to 75% of the U.S. population. The rest are mainly federal and municipal public companies.

There are three major joint power grid systems: the Eastern Power Grid System, the Western Power Grid System, and the Electricity Reliability Council of Texas (ERCOT). Texas' electricity can be independent.

3. US Mining Project Cooperation Model

Mode 1:

All-inclusive hosting fee: 6.5-7 cents

Traditional hosting services; local stable, cheap and clean energy; all-inclusive with one click, worry-free.

Mode 2:

Electricity fee + profit: 2.5-3.5 cents + 25-35% profit

Low-cost electricity prices, output profit sharing; low electricity prices, shared risks, and bull and bear markets together.

Mode 3:

Electricity cost + Capex: 3.5-4.5 cents + $250,000/MW

Reasonable electricity charges; self-built/jointly built mining farms; profit sharing with industry partners.

4. North American mining project display

Project 1:

Region: Texas, USA

Total load: 2 million load

Construction cost: about $250,000/MW

Bare electricity cost: 2.5 cents

Power-on time: From December 2021 to May 2023 (25MW will be powered by the end of December 2021, 475MW will be powered by the end of April 2022, 500MW will be powered by the end of August 2022, 500MW will be powered by the end of December 2022, and 500MW will be powered by the end of April 2023.

Project 2: Hosting Project

Region: Texas, USA

Total load: 306.8MW

Power supply time: Power will be supplied gradually from December 2021 to July 2022, with an average power supply of 38MW per month.

Contract period: 6 years

Hosting fee: 0.048-0.051 USD/kWh

Advance payment: After signing the contract, a one-time payment of one month's hosting fee for 306.8MW load, approximately US$11.35 million; (under negotiation) one month's hosting fee for the load connected to the power grid will be paid before power is turned on each month, approximately US$1.39 million.

4. Mining in Kazakhstan

1. Process of exporting mining machines to Kazakhstan

Export tax rebate for new machines (contract and invoice required);

Packing preparation (including pre-packing license plate, product name recording and archiving, packing list preparation, Chinese and Russian bilingual technical instructions, etc.);

Preparation of accompanying documents (invoice, certificate of origin, etc.)

Kazakhstan permanent import customs clearance VAT rate 12% (customs import and export registration certificate, import sales contract, import transaction certificate, vehicle documents)

2. Kazakhstan mining project display

Project A:

Total project capacity: 200MW

Project status: Currently 110KV, complete procedures

Total project investment: US$20 million

Investment proposal 1: The investor provides a loan of US$10 million to build the site and obtains a 10% equity interest in the project. Investment proposal 2: Invest US$10 million and obtain a 50% equity interest in the project.

Project B:

Total project capacity: 300MW

Project status: Currently 110KV, complete procedures

Total project investment: US$45 million

Investment advice: LPs jointly invest to establish a joint venture company locally and negotiate the equity ratio based on the investment amount.

3. Other situations of mining in Kazakhstan

Kazakhstan has 63 power plants, 70% of which are thermal power plants, but most of them are 30 years old and are relatively old. The total electricity output of Kazakhstan is not much compared with the international level.

Kazakhstan maintenance solution: maintenance points provide Antminer maintenance training center, technical training support; Antminer after-sales service official/franchised maintenance point naming

5. Bitmain Water-Cooled Miner

1. The new generation of water-cooled mining machines/containers (S19 Hydro, 938kw, 30PH/s) have reached mass production level, and the products for the first and second quarters of 2022 are already on sale.

2. ANTBOX: Mining machine container (box weight is about 3.6 tons, can hold 180 19 series, compatible with 17 series), mainly used to make up for the gap in the slow construction of overseas mines.

New Model Released

Some new models of Bitmain have not been released yet, but they have been packaged and purchased by North American customers. In order to take care of the loyal miners in China, the following new models, such as L7 and D7, will be left for domestic miners to purchase for a few days. After the purchase period, they will be sold globally. For details, please contact Bitmain BD.

6. Bixin Global Computing Power Open Platform

As a partner of Bitmain, BiXin gave a speech in the last session of the event.

1. Bixin Global Computing Power Open Platform - Power Resources

2. Total reserve capacity exceeds 2000MW;

3. 1000MW has been signed to the MOU/DD stage;

4. The design and construction of 80MW has begun;

5. 60MW has been powered, 74MW is under construction, and 20,000 machines are on the way;

VII. Comprehensive information of the event

1. Bitmain plans to send 30 employees to major mining countries around the world, mainly North America and Kazakhstan, to gather foreign mining resources in depth;

2. This event is Bitmain's way of boosting the morale of miners going overseas;

3. There are many traps in overseas mining, and many people are sitting back and waiting;