This real estate investor has a side hustle mining more than $110,000 in bitcoin every month
Categories: Bitcoin US
He runs his own confidential value firm with $250 million in resources under administration (as per his site), puts resources into land, has worked in information science and examination at Apple — and he got into bitcoin back in 2013, a long time before it was well known to make even a uninvolved bet on the crypto resource class.
Bitcoin works on a proof-of-work mining model, implying that excavators all over the planet run powerful PCs to at the same time make new bitcoin and to approve exchanges. The interaction requires costly gear, some specialized skill, and a great deal of power.
Taing decided to outsource most of that work by enlisting the help of Compass Mining, a service that hosts, supplies, and operates mining rigs for retail miners who don’t want to deal with the logistics of physically handling mining equipment themselves.
So far, the experiment is working out pretty well, according to Taing. Of his 261 mining rigs, which include Canaan AvalonMiners, Bitmain Antminer S19 Pros, and Whatsminer M30Ss, 200 are hosted through Compass in Nebraska and Canada.
They generate about 2.8 bitcoin a month, or about $111,000, according to digital receipts he provided CNBC.Taing also earns income buying and selling mining hardware to retail customers on Compass’ marketplace. They typically buy one or two at a time and are not as price sensitive.
CNBC spoke to multiple Compass customers to better understand the appetite for small-scale mining as they increasingly compete with major industry players with massive operations. But Compass CEO Whit Gibbs says that’s exactly the point: To capture market share for retail miners and put the network into the hands of the people.
Gibbs says he’s noticed a lot of people who would normally invest in real estate are instead bringing those dollars to mining, because they’re able to see a faster return on mining than they would if they were buying a rental property, especially as private equity steps in to buy houses and drive up prices.