Featured Company /
BitMine Immersion Technologies Inc.
As long as computers have been around, heat has been a bane in the side of engineers. Heat (and cold for that matter) is a deadly enemy for electrical components, most of which are designed to run optimally somewhere in the range of 104-149 ° F. Running excessively hot can lead to crashes, damage to drives, and substantially shorter computer life, amongst other things.
Air vents, mechanical fans, and heat sinks are the legacy methods for thermal control, but as computers get more powerful, next-generation tech is emerging that will soon be the standard. To that point, expect to hear and read more and more about immersion cooling, an advanced cooling technique whereby computers are submerged in specialized fluid that is circulated to keep units operating at optimal ambient temperature.
The technology received an unexpected spike in demand as a result of the COVID-19 pandemic, which sent millions of people home to work, creating unprecedented loads on servers. This came in lockstep with AMD (NASDAQ: AMD) (NASDAQ: INTC) Market and Markets see the market momentum building, leading to a 24.2% compound annual growth rate to grow the immersion cooling market size from $244 million in 2021 to $1.71 billion by 2030.
Industry giants are moving with a purpose towards immersion. Expecting greater adoption owing to higher core counts and clock speeds, Intel is working with the Open Compute Project and cooling vendors to make immersion technology more accessible. Elsewhere, BP Amoco’s (NYSE: BP) Castrol has teamed up with the Research Institutes of Sweden to collaborate on developing new immersion cooling fluids for datacenters.
Servers are just one application; immersion cooling could be highly disruptive to the cryptocurrency mining industry, an industry rallying after a sharp decline in the 14 months leading into 2023. Two companies stand out in this space: mining juggernaut Riot Blockchain, Inc. (NASDAQ: RIOT) (OTCPK: BMNR)
Watch for BitMine Immersion Tech, or BitMine for short, to make its mark in the same space. BitMine is initially working on Bitcoin mining operations using immersion technology in low-cost energy regions of Trinidad and Texas with expectations for updates on progress coming soon. Initially, BitMine plans to exclusively mine Bitcoin for its own account, however the company is open to various hosting arrangements of others’ computers if the economics make sense.
Riot Not Alone
While Riot – with its $1.1 billion market cap – trumpets a very large industrial-scale immersion-cooled mining operation, BitMine – with its $41 million market cap - is also pursuing its own large scale operation, with an agreement in place with a large regional enterprise in Trinidad to enable it to locate up to 100 MW of hosting equipment at different locations owned by the provider. The agreement affords BitMine all the necessary infrastructure necessary for its containers and mining rigs, including real estate, internet access, on-site security, and electricity at its industrial rate, currently just 3.5 cents per kilowatt hour (kWh) plus various fees. In Bitcoin mining, 3.5 cents per kWh is low, meaning profitability can likely be maintained even during volatile Bitcoin price swings.
This isn’t a napkin drawing BitMine is trying to bring to fruition. BitMine’s team is steeped in experience of immersion technology for mining, being involved with the concept since it was developed in 2017. And they’re getting it done.
The pilot site of datacenters is ready to be switched on as soon as a few more details with the local partners and authorities are finalized.
The second BitMine project, a joint venture with Roc Digital Mining LLC, is being constructed in Pecos, Texas. As detailed in a Form 8-K filed with the Securities and Exchange Commission, the company has contributed and sold assets to this venture and it too is moving forward, although it has been delayed while power agreements are finalized. The project has capacity of 5-6 MW over a five-year period.
To lend some color to value, consider that BitMine acquired an approximate 30% interest in both ROC Manager, which is the manager of ROC Digital Mining I LLC, as well as a similar percentage ownership of ROC Digital Mining I LLC itself. BMNR made a capital contribution to ROC Operating of $1.06 million, consisting of one immersion container unit valued at $300,000, six GE Prolec 1500 KVA transformers valued at $750,000, and $6,000 cash. The company also sold ROC Operating four immersion container units for $1.2 million, payable pursuant to a promissory note (at 5% interest per annum, 42 monthly installments) secured by a lien against the containers.
Any news on either Trinidad or Pecos should be a catalyst for BMNR.
Savvy: Buying at Rock Bottom Prices
The plan is to buy ASIC miners – which, incidentally, can be bought at steep discounts now that the Bitcoin price plunge put countless over-leveraged miners out of business – for its own account. It was the dive in ASIC miner prices that pushed BitMine to re-focus its business model.
“ASIC miners are selling at a fraction of their price from a year ago,” said BMNR CEO Jonathan Bates in October. “Our original plan was to host others’ ASIC miners, and self-mine with a small percentage of our capacity. Given the sharp drop in ASIC prices, we feel that focusing on self-mining is a better use of our datacenter equipment and a better use of firm capital at this time. While we still plan to host for others, we intend to shift a greater percentage of our business mix in favor of self-mining relative to hosting, as long as the distress in ASIC miner prices continues.”
The Future is Now
At least a high-level understanding of immersion technology is required to grasp why it is going to dominate energy-intense computing going forward. Liquid-cooled technology has been around for a number of years, often looked at as the future of computing. Advantages abound with this next-gen tech related to performance, durability and ESG.
For starters, thermal control through immersion and a closed-loop system keeping chips at optimal temps means operators can say goodbye to mechanical failures from overheating. In turn, this extends the lifespan of each unit, improving ROI and lowering operating expense.
Operators enjoy higher yields with immersion too. The average mining process for a single bitcoin wastes 772kWh- combined from mechanical overhead, dissipated heat, and heat containment. BitMine units can eliminate up to 95% of that waste through superior thermal capacitance.
Furthermore, immersion is the responsible way to overclock. Removing both the variability of mechanical failures and electrical overhead, combined with the superior heat capacitance of non-conductive immersion fluid allows for 100+kW rack densities suitable for safe overclocking.
In aggregate, the numbers tell the story: 25% overclocking, -60% hardware failure rate, +30% hardware lifespan, and -95% cooling costs.
We are now at the intersection of mechanical and liquid cooling, where liquid cooling will start to be the more heavily trafficked route. Put aside the aforementioned advantages for a moment and consider one other key benefit: pollution. We are amid a green revolution and drive for net zero where environmentally unfriendly technologies will become extinct.
It is no secret that cryptocurrency mining consumes massive amounts of energy, which contribute to carbon emissions and climate change. Immersion technology reduces emissions and strain on the electric grid, making it the next logical progression in mining. Plus, there is no water waste and heat is re-used.
CEO is “All In”
Investors love to know insiders have skin in the game. BitMine CEO Jonathan Bates is the personification of commitment to the company. Serving as Chairman since July 2021, Bates was appointed Chief Executive Officer in May 2022, agreeing to work for no salary. He only receives equity as a paycheck, meaning he is highly incentivized to see the company perform and build value.
Further, Innovative Digital Investors Emerging Technology (IDI), LP, a 100% performance-fee investment fund managed by Bates, is the largest shareholder of BMNR and definitely a “friendly” investor that has put about $3.0 million into the company in exchange for preferred stock. IDI in October provided BMNR a $1.0 million line of credit for equipment purchases for operations. Out of the approximately 49 million shares issued and outstanding, seed investors and IDI hold about 41 million, most of which are restricted stock.
It is rare to find a company where the biggest challenge in order to uplist to the NYSE American just may be meeting the float (freely tradable shares) requirement. That speaks volumes to the quality of management to keep a tight cap table.
“I have been all-in on this business from day one,” said Bates, adding, “I can’t wait to see what the future holds for us.”
Safe to say, the investment community can’t wait to see also.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro cap investors on the internet.
Corporate Snapshot:
BitMine Immersion Technologies Inc.
Stock Symbol:
BMNR
Stock Exchange:
OTCPK
Sector:
Technology
52 Week High:
$3.7400
52 Week Low:
$0.0001
Current Stock Quote / Chart / News: Click here
Information as of
March 06, 2023
As long as computers have been around, heat has been a bane in the side of engineers. Heat (and cold for that matter) is a deadly enemy for electrical components, most of which are designed to run optimally somewhere in the range of 104-149 ° F. Running excessively hot can lead to crashes, damage to drives, and substantially shorter computer life, amongst other things.
Air vents, mechanical fans, and heat sinks are the legacy methods for thermal control, but as computers get more powerful, next-generation tech is emerging that will soon be the standard. To that point, expect to hear and read more and more about immersion cooling, an advanced cooling technique whereby computers are submerged in specialized fluid that is circulated to keep units operating at optimal ambient temperature.
The technology received an unexpected spike in demand as a result of the COVID-19 pandemic, which sent millions of people home to work, creating unprecedented loads on servers. This came in lockstep with AMD (NASDAQ: AMD) (NASDAQ: INTC) Market and Markets see the market momentum building, leading to a 24.2% compound annual growth rate to grow the immersion cooling market size from $244 million in 2021 to $1.71 billion by 2030.
Industry giants are moving with a purpose towards immersion. Expecting greater adoption owing to higher core counts and clock speeds, Intel is working with the Open Compute Project and cooling vendors to make immersion technology more accessible. Elsewhere, BP Amoco’s (NYSE: BP) Castrol has teamed up with the Research Institutes of Sweden to collaborate on developing new immersion cooling fluids for datacenters.
Servers are just one application; immersion cooling could be highly disruptive to the cryptocurrency mining industry, an industry rallying after a sharp decline in the 14 months leading into 2023. Two companies stand out in this space: mining juggernaut Riot Blockchain, Inc. (NASDAQ: RIOT) (OTCPK: BMNR)
Watch for BitMine Immersion Tech, or BitMine for short, to make its mark in the same space. BitMine is initially working on Bitcoin mining operations using immersion technology in low-cost energy regions of Trinidad and Texas with expectations for updates on progress coming soon. Initially, BitMine plans to exclusively mine Bitcoin for its own account, however the company is open to various hosting arrangements of others’ computers if the economics make sense.
Riot Not Alone
While Riot – with its $1.1 billion market cap – trumpets a very large industrial-scale immersion-cooled mining operation, BitMine – with its $41 million market cap - is also pursuing its own large scale operation, with an agreement in place with a large regional enterprise in Trinidad to enable it to locate up to 100 MW of hosting equipment at different locations owned by the provider. The agreement affords BitMine all the necessary infrastructure necessary for its containers and mining rigs, including real estate, internet access, on-site security, and electricity at its industrial rate, currently just 3.5 cents per kilowatt hour (kWh) plus various fees. In Bitcoin mining, 3.5 cents per kWh is low, meaning profitability can likely be maintained even during volatile Bitcoin price swings.
This isn’t a napkin drawing BitMine is trying to bring to fruition. BitMine’s team is steeped in experience of immersion technology for mining, being involved with the concept since it was developed in 2017. And they’re getting it done.
The pilot site of datacenters is ready to be switched on as soon as a few more details with the local partners and authorities are finalized.
The second BitMine project, a joint venture with Roc Digital Mining LLC, is being constructed in Pecos, Texas. As detailed in a Form 8-K filed with the Securities and Exchange Commission, the company has contributed and sold assets to this venture and it too is moving forward, although it has been delayed while power agreements are finalized. The project has capacity of 5-6 MW over a five-year period.
To lend some color to value, consider that BitMine acquired an approximate 30% interest in both ROC Manager, which is the manager of ROC Digital Mining I LLC, as well as a similar percentage ownership of ROC Digital Mining I LLC itself. BMNR made a capital contribution to ROC Operating of $1.06 million, consisting of one immersion container unit valued at $300,000, six GE Prolec 1500 KVA transformers valued at $750,000, and $6,000 cash. The company also sold ROC Operating four immersion container units for $1.2 million, payable pursuant to a promissory note (at 5% interest per annum, 42 monthly installments) secured by a lien against the containers.
Any news on either Trinidad or Pecos should be a catalyst for BMNR.
Savvy: Buying at Rock Bottom Prices
The plan is to buy ASIC miners – which, incidentally, can be bought at steep discounts now that the Bitcoin price plunge put countless over-leveraged miners out of business – for its own account. It was the dive in ASIC miner prices that pushed BitMine to re-focus its business model.
“ASIC miners are selling at a fraction of their price from a year ago,” said BMNR CEO Jonathan Bates in October. “Our original plan was to host others’ ASIC miners, and self-mine with a small percentage of our capacity. Given the sharp drop in ASIC prices, we feel that focusing on self-mining is a better use of our datacenter equipment and a better use of firm capital at this time. While we still plan to host for others, we intend to shift a greater percentage of our business mix in favor of self-mining relative to hosting, as long as the distress in ASIC miner prices continues.”
The Future is Now
At least a high-level understanding of immersion technology is required to grasp why it is going to dominate energy-intense computing going forward. Liquid-cooled technology has been around for a number of years, often looked at as the future of computing. Advantages abound with this next-gen tech related to performance, durability and ESG.
For starters, thermal control through immersion and a closed-loop system keeping chips at optimal temps means operators can say goodbye to mechanical failures from overheating. In turn, this extends the lifespan of each unit, improving ROI and lowering operating expense.
Operators enjoy higher yields with immersion too. The average mining process for a single bitcoin wastes 772kWh- combined from mechanical overhead, dissipated heat, and heat containment. BitMine units can eliminate up to 95% of that waste through superior thermal capacitance.
Furthermore, immersion is the responsible way to overclock. Removing both the variability of mechanical failures and electrical overhead, combined with the superior heat capacitance of non-conductive immersion fluid allows for 100+kW rack densities suitable for safe overclocking.
In aggregate, the numbers tell the story: 25% overclocking, -60% hardware failure rate, +30% hardware lifespan, and -95% cooling costs.
We are now at the intersection of mechanical and liquid cooling, where liquid cooling will start to be the more heavily trafficked route. Put aside the aforementioned advantages for a moment and consider one other key benefit: pollution. We are amid a green revolution and drive for net zero where environmentally unfriendly technologies will become extinct.
It is no secret that cryptocurrency mining consumes massive amounts of energy, which contribute to carbon emissions and climate change. Immersion technology reduces emissions and strain on the electric grid, making it the next logical progression in mining. Plus, there is no water waste and heat is re-used.
CEO is “All In”
Investors love to know insiders have skin in the game. BitMine CEO Jonathan Bates is the personification of commitment to the company. Serving as Chairman since July 2021, Bates was appointed Chief Executive Officer in May 2022, agreeing to work for no salary. He only receives equity as a paycheck, meaning he is highly incentivized to see the company perform and build value.
Further, Innovative Digital Investors Emerging Technology (IDI), LP, a 100% performance-fee investment fund managed by Bates, is the largest shareholder of BMNR and definitely a “friendly” investor that has put about $3.0 million into the company in exchange for preferred stock. IDI in October provided BMNR a $1.0 million line of credit for equipment purchases for operations. Out of the approximately 49 million shares issued and outstanding, seed investors and IDI hold about 41 million, most of which are restricted stock.
It is rare to find a company where the biggest challenge in order to uplist to the NYSE American just may be meeting the float (freely tradable shares) requirement. That speaks volumes to the quality of management to keep a tight cap table.
“I have been all-in on this business from day one,” said Bates, adding, “I can’t wait to see what the future holds for us.”
Safe to say, the investment community can’t wait to see also.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro cap investors on the internet.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. BitMine Immersion Technologies Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause BitMine Immersion Technologies Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for BitMine Immersion Technologies Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.
© 1999-2023AllPennyStocks.com Media, Inc. All rights reserved. AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views; opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in its disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site.
AllPennyStocks.com has been compensated twenty-five thousand dollars by the company for its efforts in presenting the BMNR profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will," "anticipates," "estimates, "believes," or that by statements indicating certain actions "may," "could," or "might" occur.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.