On Preowned Imported Bitcoin Miners in North America to Its Mining Repair Business
San Juan, Puerto Rico, Dec. 02, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — BOTS, Inc. (OTC: BTZI), (“BOTS” or “The Company”), a global technology conglomerate specialized in Blockchain-based solutions including decentralized finance applications, cybersecurity, crypto generation, mining equipment repair, and warranties, announced today that TekX Mining and Gaming PC Solutions, LLC begins offering testing, inspection & certification (TIC) services as a value-added set of procedures which is now provided to ensure that the preowned Bitcoin miners and other related products meet with the mandated regulations and manufacturing standards in terms of quality and safety. These services include optional on-site or remote diagnostic testing, documentary checks, data processing consistency verification, management process audits, and inspections across the entire supply chain. Also, TekX will be providing repairs and extended 12-month renewable Bitcoin miners warranties in the US exclusively. Testing and commission will be provided to the institutional Bitcoin miner purchasers as well as smaller miner-operators or at the request of the manufacturer. TekX is Bitmain certified and currently only utilizes Bitmain approved parts and methods.
TheBlockCrypto.com reported recently that Bulk preorders for the latest Bitcoin ASIC miners are sold out until next spring. Bulk preorders for the most powerful Bitcoin mining hardware from major manufacturers are already queued up until May of next year, suggesting an increasing level of institutionalized demand for such equipment.
Bitmain’s official website shows that preorders for its flagship AntMiner S19 Pro, S19, and T19 products will have to wait until May 2022 for delivery, which means the preorders with shipments before that have already been sold out at the Bitcoin hardware giant.
Traditionally institutional Bitcoin hardware investors did not invest or purchase preowned miners due to higher risks of repeated malfunctioning. TekX has developed extended service warranties and significant repair capacities of up to 1,000 miners per day. The Company is offering and believes this service will open up a new market and new revenue sources for coming years.
Hundreds of thousands of preowned miners are being migrated to the US. Buyers report a high percentage of malfunctioning preowned miners and a lack of established Quality Control measures available in China or in the USA. Some buyers report up to 30% of miners bought overseas arrive in non-working condition. TekX service will include shipment of all miners to our facility in the USA, testing, repair, and certification in America. Potential revenues are expected to be $20-30 million in 2022.
As reported recently by CNBC: The US is officially the top destination for Bitcoin miners, beating out China for the first time. One-third of Bitcoin’s hash rate is in the US, according to the Cambridge Centre for Alternative Finance, a 428% increase from September 2020. The US is now the number one destination for Bitcoin miners, eclipsing China for the first time ever. While it was already trending in that direction, new data from Cambridge University released early Wednesday makes it official. As of July, 35.4% of Bitcoin’s hash rate – an industry term used to describe the collective computing power of miners – is in the United States, according to the Cambridge Centre for Alternative Finance. That’s a 428% increase from September 2020.
America partly has China to thank for its newfound dominance in the mining industry.
Miners started fleeing China en masse, heading to the cheapest energy sources on the planet in what was dubbed “the great mining migration.” A whole lot of them ended up in America.
“The whole narrative of China controlling Bitcoin is now completely destroyed,” said Boaz Sobrado, a London-based fintech data analyst.
The US ticks a lot of boxes for migrant Bitcoin miners searching for a new home.
For one, states like Texas boast some of the world’s lowest energy prices, which is a major incentive to miners who compete in a low-margin industry where their only variable cost is typically energy.
The US is also flush with renewable power sources.
Washington state is a mecca for hydro-powered mining farms. New York produces more hydroelectric power than any other state east of the Rocky Mountains, and it counts its nuclear power plants toward its 100% carbon-free electricity goal. Meanwhile, Texas’ share of renewables is growing over time, with 20% of its power coming from the wind as of 2019. The Texas grid also continues to rapidly add more wind and solar power. Miners across the country have also harnessed nuclear power. Some are latching their rigs to otherwise stranded energy, like natural gas going to waste in oil fields across Texas. This reduces greenhouse gas emissions and generates money for the gas providers and miners.
“If you’re looking to relocate hundreds of millions of dollars of miners out of China, you want to make sure you have geographic, political, and jurisdictional stability. You also want to make sure there are private property rights protections for the assets that you are relocating,” said Darin Feinstein, co-founder of Core Scientific.
Before Bitcoin miners started coming to America, companies across the country made a gamble that eventually, if adequate infrastructure were in place, they would set up shop in the US.
In recent years, the globalization of trade has led to the emergence of complex supply chains impacting product quality, which has created an increased requirement for improved testing and commissioning processes.
BOTS, Inc. announced earlier that the Company would offer its TekX Accelerated Training at its Parkersburg campus. Those 2-week advanced programs already provide students with knowledge of Bitcoin mining repairs technology and state-of-the-industry miner diagnostics, electrical, and mining technologies.
In addition to providing high-tech training, TekX is conducting research on cutting-edge immersion-cooling mining technologies. Immersion-cooling is a revolutionary technology where Bitcoin mining rigs are submerged in a specialized liquid that is circulated, keeping the hash-boards integrated circuits cooler and operating at lower temperatures. Based on industry data immersion-cooling test results, an estimated 25% -30% increase in hash rate is achieved from lower temperatures.
TekX is utilizing the most advanced technologies such as ultrasonic cleaners, clean rooms, automated soldering gear, and other state-of-the-art equipment in order to ensure that customers’ rigs are operating without interruption and generating the maximum ROI.
Cryptocurrency mining has become very popular in the past years as investors embrace the crypto asset to diversify their wealth in addition to the traditional stock market.
As previously announced, BTZI is the first public Company to offer Bitcoin miner warranties to operators in North America. The extended miner warranty program will initially be covering Bitmain manufactured miners, but soon, BTZI will add coverage for Canaan Inc miners, MicroBT Whatsminer, and other leading Bitcoin miner manufacturers. The Company announced earlier the availability of Bitcoin mining repairs through an authorized national Bitcoin miners’ repair center, which is now fully operational through our new subsidiary.
Around 3,000,000 Bitcoin miners are in operation in the US and about 2,000,000 in Canada.
BTZI estimates the extended Bitcoin miners’ warranty market size could quickly exceed $1.2 billion in the US.
BOTS, Inc. is the first to build an approach to the Bitcoin miners’ extended warranties — providing a cost-effective and efficient way for Bitcoin mining farm operators to buy warranty contracts and file claims against them –which allows Bitcoin miners in North America to take their mining business to the next level. The warranty covers labor on all components of the Bitcoin mining rig, including the availability of remote monitoring services, mining rig hardware coverage, and racking systems.
About BOTS, Inc.
BOTS, Inc. is a global technology company specialized in Blockchain-based solutions, including decentralized finance applications, cybersecurity solutions, and owns a portfolio of digital assets and crypto-related businesses such as BeadSwap, a decentralized crypto exchange, Bitcoin ATM machines, and corresponding US patents and Cyber Security Group LLC, an ISO/IEC 27001:2013 Information Security Management System certified company. The Company also provides crypto mining consulting, optimization, and crypto mining equipment repair and insurance.
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