Some thoughts on current mining market

Bitcoin price surges back to 59k after a lukewarm momentum hovering at 52k. In miner market, team did not see any correction on unit price even when bottom dropped out to 50k. On the contrary, mining rigs quote price continuously rising due to the expectation of tightened supply in coming months.

Bitcoin mining is more friendly for institutions to stepping in by a lot of reasons, such as tangible assets, projected periodical cash flows… Especially when mining machines’ price has been rose slower than bitcoin spot price these days, institutions are likely switching to the laggards. We see huge room still on profitability of mining rigs (EPS), on the other hand the tightened supply likely level up the valuation level (PE), which all engender a buoyant outlook on mining.

When drafting this article, Blockstream just announced its BMN (Blockstream Mining Note) which offers a 3 years locked mining option on Liquid network for qualified investors. Seems like giants are rushing into this area simultaneously, we are undergoing the massive change that bringing bitcoin mining into genuine standardization.

Under current circumstances, net purchasing price of pBTC35A equal level machines reaches 115–120USDT per TH/s, comparing with 75–80USDT per TH/s when first introduced pBTC35A in January. In coming 2 months, team may gradually bring forward the final batch (price unlikely below 145USDT per TH/s) and turn into a new power ratio level. Will make further notice on our official twitter (https://twitter.com/MarsProject2020) once new batch ready.

Mars Tokenomics

Trader (unstaked token holder) gives up earning in exchange of trading & speculating oppotunities, in this case MARS token holder takes over the corresponding mining output by staking.

We made a rough calculation on return by staking in MARS single token pool. Currently theoretical APY reaches 82.29% (may not be exactly same in practical), APY surges further by more and more POW tokens selling on the platform while decline by MARS continuous circulating and MARS price hike.