The easy way to mine Bitcoin with WeMine and SwissBorg

When we think of investing into Bitcoin, we often overlook mining, due to the complexity of the operation if you tackle it yourself. But there’s strength in numbers!

Connecting with other likeminded individuals and pooling the funds together gives the small investors enough leverage to be able to compete with institutional mining operations.

You can once again invest into Bitcoin mining via the SwissBorg app! We are launching another round of Bitcoin mining with WeMine and Hearst, our long-standing partners.

In this document, we are going to dive straight into the specifics of the deal and how it compares to the first one.

Key Highlights

This deal is appropriate for investors who believe Bitcoin is going to go up and want to accumulate it in the long run.
Due to the drop in BTC price, the miners are somewhat cheaper compared to the first round. The investment is still broken down into $100 NFTs, however there is more mining power per NFT.
Investors receive a special allocation of WeMine tokens, equivalent to $0.42 for every $1 invested at $20m fully diluted valuation (FDV), vested over 24 months. MINE distribution and vesting start at the Token Generation Event (TGE) of the MINE token.
The miners will be running for as long as it will be profitable, i.e. the rewards will cover the expenses. See below for more detailed scenarios.
This is a long-term Bitcoin play. If you believe that the BTC price will be higher in the future and don’t mind waiting for it, this deal is perfect for you.
You can lose money with this investment.

Terms of the sale

The combined mining power will be broken down into NFTs, all exactly the same to each other in terms of what they provide. Each NFT provides:

A mining power of 6.15 TH/s along with the corresponding net BTC rewards (assuming 100% uptime).
A special allocation of WeMine tokens equivalent to $0.42 for every dollar invested, calculated at the FDV of $20M.

Primarily due to the lower price of Bitcoin, there is some discount on the mining devices, compared to the first time. While the price of NFT is approximately the same as last time, the corresponding mining power is higher.

Similar to last time, the BTC miners will be running for as long as mining remains profitable, meaning that operational costs, such as hosting, pool fees and electricity fees are covered with the mined rewards.

Mining operations are designed to stop if they become unprofitable. The average miner lifespan is estimated to be around four years. Actual uptime may vary due to maintenance or technical interventions.

The user receives the WeMine token rewards on top of the BTC mining rewards. These rewards are vested, with 5% being released at the Token Generation Event (TGE) and the rest being linearly vested over 24 months. The 24-month vesting period starts at the TGE.

Once the NFT sale closes, we expect it will take approximately 1 month to procure and deploy the miners. On every second working day of the month, we will distribute the BTC rewards generated in the previous month.

What affects the miners’ profitability?

Profitability of the miners depends on a few key variables.

By far the largest factor that has the biggest impact on the net rewards received is the market price of Bitcoin. This is due to the fact that the electricity bill is received in fiat currency such as USD, while the rewards are received in BTC. While the electricity bill is typically within a certain range, the price of BTC greatly impacts the portion of rewards needed to cover the costs.

Example: Assume that the monthly mined rewards after pool & hosting fees are 0.7 BTC for all the SwissBorg miners. The electricity cost is $45,000 in all three scenarios.

The simplified scenario illustrates how BTC price affects mining rewards

You will notice that with an increase of 25% in BTC price from Bearish to Moderate and 50% from Bearish to Bullish, the impact on net rewards is an increase of 82% and 236% respectively.

Another factor with a huge impact on the net rewards is the electricity price. This is where most small miners are pushed out of business. But small miners pooling their power together, means more leverage over electricity providers - WeMine has negotiated a fixed price of electricity.

The next important factor to consider is the mining difficulty. It is automatically adjusted approximately every 2 weeks to keep the new blocks coming approximately every 10 minutes. When more miners join or better hardware appears, difficulty rises and the rewards are lowered. When miners quit, the difficulty drops, making it easier to generate a block and earn rewards.

Rewards are also impacted by the hashrate of the miners and uptime, in other words the efficiency of the hardware. The miners being bought are top tier of the current generation miners. Primarily due to Bitcoin price being lower compared to 6 months ago, we’re able to purchase them somewhat cheaper than last time. Keep in mind that while the price per NFT remains at $100, the corresponding hashpower should be higher, compared to last time.

An important factor to consider is the block rewards, which are currently fixed at 3.125 BTC per block plus variable rewards on top (more in case of congestion). The next halving is expected to happen in March-April 2028.

Financial Projections

Before looking at the projections below, it is very important to understand that any of the variables mentioned above (and others) can significantly alter the outcome of this deal. Please note that any figures, projections or examples shown are for illustrative purposes only. They do not constitute a guarantee of returns and are not indicative of current or future performance, nor do they represent the actual amount of months that the operation will last for.

We have made our calculations based on the following scenarios:

Bearish. BTC price declines below current levels and stays there for a long period of time and altcoins are bleeding. Due to the low interest in crypto the BTC mining difficulty drops. The price doesn’t recover even post-halving forcing many miners out of business. BTC mined is not enough to cover the expenses.
Neutral. The markets remain indecisive and Bitcoin hovers at an average price of $100,000. The altcoin markets remain suppressed. Post-halving price remains below profitability line, forcing many miners to cease their operations after halving.
Bullish. Bitcoin revisits its all time high, tests it and breaks it indecisively, price in a few years is $135,000. Though mining rewards post-halving decrease, the operation is still profitable and the miners generate rewards for 48 months.

Very Bullish. Bitcoin decisively breaks its all time high as more institutions and countries start adding it to their strategic reserve. The price in a few years is $200,000 and there’s a strong demand. The mining difficulty increases, but the rewards can be sold at a higher price. Mining lasts for 48 months.

The numbers below represent projected rewards from mining and MINE token, assuming the different scenarios above.

BTC Mining — The numbers below represent projected rewards from mining and MINE token, assuming the different scenarios above.

Closing Thoughts

This deal is suitable for investors with a long term conviction in Bitcoin who believe its price will be higher in a few years. It complements simply holding BTC or investing via dollar cost averaging (DCA), and should be treated as a long term investment.

You pay the setup cost upfront, then you receive BTC rewards gradually over time. If Bitcoin rises strongly, returns can grow faster than buy and hold. It can feel like leverage, but there is no liquidation risk.The downside is the same asymmetry. If Bitcoin falls or stays low for an extended period, outcomes can be worse than holding BTC because of the setup cost. Invest accordingly and size the position with that risk in mind.