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Underclock to Optimize Mining Business
4 low-power mode strategies that will improve your mining business
Underclocking, also referred to as low power mode, was implemented by many miners to survive the bear market of 2022. It has become common practise and considered a powerful tool to improve the efficiency of a mining business. In this article I look at how to apply underclocking in a strategic way to optimize mining operations.
What is Underclocking?
Improve Efficiency Miners
Reduce Energy Bill
Increase Longevity of Hardware
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What is Underclocking?
Underclocking mining hardware means reducing the operating frequency of the ASIC chips below their default clock speeds. This process is often applied to decrease power consumption. Underclocking is also referred to as low power mode. It can be a powerful tool to optimize your mining business. Here are four strategies:
1. Improve Efficiency Miners
By lowering the clock speed, miners can strike a better balance between energy consumption and mining profitability. This relationship occurs because reducing the clock speed of the ASIC chips leads to a lower power draw from the hardware, resulting in energy savings. The reduction in clock speed does impact the processing power of the ASIC chips, ultimately leading to a decrease in the hashrate output. Power consumption typically decreases at a faster rate than the hashrate output.
The relationship between power consumption and hashrate output during underclocking dependent on various factors, including the specific ASIC model, the efficiency of the cooling system, and the environmental conditions. Miners should conduct thorough testing and analysis to determine the optimal clock speed that achieves the desired balance between energy efficiency and mining performance.
An example of a M31S+ 80TH deployed in Paraguay. Based on a hashprice of $0.065/TH/Day, a kWh fee of $0.056 kWh and 100% uptime.
Normal power mode
Revenue: $0.065 x 80TH x 31 days = $161.20
Cost: 3.550 kW x 24 hours x 31 days x $0.056 = $149.90
Profit: $161.20 - $149.90 = $11.30 per machine per month
Low power mode
Revenue: $0.065 x 60TH x 31 days = $120.90
Cost: 2,200 kW x 24 hours x 31 days x $0.056 = $91.66
Profit: $120.90 - $91.66 = $29.24 per machine per month
Boosting performance by using custom firmware is becoming a common practice. Want to learn more about firmware? Check out this article:
2. Reduce Energy Bill
Peak hour pricing is a system where the cost of electricity is higher during times when the demand is the highest. It encourages people to use less energy during those peak hours and shift their usage to times when the cost is lower. This helps to manage the strain on the utility infrastructure.
Using underclocking during peak demand hours can be a strategic approach to lower the electricity bill. Reducing the power consumption of the miners mitigates the impact of peak pricing on operational costs. It is crucial to understand the electricity pricing structure in your region, especially if it follows a time-of-use model where rates fluctuate throughout the day. Identify the peak demand hours when electricity rates are the highest. Miners can implement automated systems or software that can dynamically adjust.
Algorithmic Bitcoin mining automates mining tasks to increase efficiency and reduce human intervention. It uses real-time data like ambient temperature and electricity price to optimize mining operations. Read all about it in the article below:
3. Manage Heat
Mining rigs generate a significant amount of heat, and excessive heat can lead to hardware malfunctions and reduced efficiency. Underclocking can help in managing the heat generation and maintaining stable operating temperatures. To optimize performance during summer, miners can consider powering down during the hottest hours of the day, preventing hardware from overheating.
4. Increase Longevity of Hardware
Overclocking can put a strain on the hardware, reducing its lifespan. Underclocking, on the other hand, can help in ensuring that the hardware operates within its thermal limits This reduces the risk of hardware failure and extends lifespan.
With bigger operations comes more complexity. Management software has become crucial to run a smooth and efficient operation. Find out what options are out there:
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