As you may know, we have long-term electricity contracts assuring us low-cost hydro energy at our main location. Since May 2023, where we started with an electricity price of $0.055 / kWh, we have been able to slowly but surely reduce electricity prices to $0.045 / kWh due to efficiency improvements at our farm.

Recently, though, the US Dollar has been losing strength compared to the local currency our electricity contracts are denominated in, paired with high inflationary pressure in both, the US Dollar and our local currency. This means that – while our electricity contracts only received minimal updates due to inflation – the amount of local currency we get for the USDT from the electricity wallet has gone down, resulting in costs of around $0.062 / kWh for April 2025.

Price changes for May 2025

Because of this, we have taken the following measures, effective May 1st 2025:

  • We pay for the extra costs for April 2025 (around 46,600 USDT) out of our pocket to support the project
  • The official electricity price is raised to $0.059 / kWh for May 2025
  • We’ll cover the smaller cut between $0.062 and $0.059 for now

These electricity changes have a short-term impact on general profitability you see in the dashboard. Long-term and from a macro perspective, we are still highly profitable compared to the global average production price per Bitcoin.

Even though the electricity costs went up, we are still firmly below the global average

Why did you not inform about the changes earlier?

We usually get our electricity costs invoice at the first of the next month. In this case, we got our electricity bill late on April 30th because May 1st is a holiday. We did assume it would go up a bit based on exchange rates of the local currency, but not that much. We did not assume we would need to update the official electricity price.

Why is the price update only for May 2025?

We do not expect the local currency to stay strong against the US Dollar. It suffers from high inflation and is only held up by the artificial price dictate of involved central banks right now. Hence, we will observe the situation during May and hopefully switch back to $0.045 / kWh soon. If not, we’ll most likely switch to a model where we update prices automatically on a weekly or monthly basis.

Why are you covering part of the extra costs?

Because $0.059 / kWh sounds much better than $0.062 / kWh and costs us only a little. As stated above, we also don’t think this will stay high for long, so we would rather not switch to the real price directly and soften the initial blow.

Long-term measures and implications

Of course, this is not where the electricity price story ends. We also do have several electricity price improvement measures we can and will take over the next weeks and months.

a) Switching Aluminum cables to Copper cables

Currently, we mostly use Aluminum cables to deliver electricity between transformers and mining containers. Copper cables are considerably more costly compared to Aluminum but lose less electricity in transport. While the Aluminum cables have been great to save on infrastructure costs, we will start switching to copper for higher long-term efficiency. This should be able to decrease long-term electricity expenses by about 2-4%.

b) Optimizing operating temperatures

We already started welding frames and installing big, high-throughput fans on mining containers weeks ago, and a large shipment with fans is on the way. The bigger fans will help reduce and further stabilize operating temperatures, which will result in lower miner temperatures during operating. Lower temperatures lead to lower electricity consumption, especially during summer.

c) Utilizing Project Greenhouse

You might have already seen the new Electricity Mining offer in the dashboard. Electricity Mining will use flare gas generators and utilize the excess heat for heating local food production in greenhouses. This has the long-term impact of reducing electricity prices for Infinity Hash Stacks as soon as all people that bough Electricity Mining contracts have been paid in full.

If you want to take part in Elektrik Madenciliği, we still have some contracts available in the dashboard.

We wish all of you a nice weekend and happy mining together,

Your Infinity Hash Team