AI, Low Energy Consumption to Make Mining More Profitable

A company from Switzerland, Swiss Alps Energy AG (SAE), is planning to return the mining industry to high profits. The plan includes using clean yet cheap energy sources to feed mining rigs, consuming much less energy. The SAE estimates ROI from its mining operation will be over 200% in the next two years if the prices of cryptocurrencies continue to rise.

The mining industry is an integral part of the blockchain infrastructure. However, it is experiencing certain problems affecting rentability. Mining operations grow ever more complex, which leads to a serious rise of electricity consumption by mining equipment, and the competition for mining rewards is getting tougher. SAE claims to have a solution for the industry’s issues, allowing more profitable mining operation.

Mining cubes running on clean energy

The main unit of the SAE mining system is the SAM Cube, an aluminum case equipped with ASIC or GPU miners. The first units contain mining rigs for the mining of Ethereum and Bitcoin, but this list will be expanded in the future to “practically all cryptocurrencies”.

SAE deploys SAM Cubes high in the Swiss mountains. The annual average temperature at this altitude is below 15 degrees Celsius, so the SAM Cube does not require any energy for air conditioning. In addition, the SAM Cube leverages an Organic Rankine Cycle (ORC) system, which uses the waste heat of processes through a downstream steam power process to generate electricity. The high altitude facilitates energy recovery as it lowers the boiling point of water. SAE claims its ORC system will reduce energy consumption drastically compared to other mining facilities.

To make profits even higher, SAE will also implement SamaiX technology for the mining operation. SamaiX is an AI that calculates the profitability of different coins’ mining on a real-time basis and makes suggestions for miners so that they can adjust their mining accordingly.

The next step for SAE is to build or purchase several small-scale hydroelectric power plants, a popular source of energy in Switzerland. The company sets a goal to use “green” and sustainable sources of energy only. SAE has already started buying electricity at a price of only 5.26 cents per kWh.

High ROI for mining operations

As SAE states, all the listed technologies can increase the profitability of cryptocurrency mining. Calculations made by the company show an annual profit from the current model of the SAM Cube with an output of 7000 TH/s will be more than $300,000 if the price of Bitcoin and Ethereum reaches $10,000 and $1,000 respectively. The cost of power will be as little as $55,000.

At the same time, SAE’s main source of income will be leasing its infrastructure to mining and server facilities. For the capacity of 14 TH/s, SAE charges a fixed fee of $4,000 for two years and a service fee of 10% of the mining revenues.

To sum up, the company expects the ROI of its mining operation to be over 200% in the next two years if the prices of cryptocurrencies continue to rise

SAE blockchain platform as a service

The company emphasizes it will develop decentralized blockchain infrastructure on the basis of SAM mining infrastructure to provide its platform as a service for customers. The company will give customers the opportunity to operate a private decentralized blockchain and develop individual solutions based on distributed ledger technology.

The SAM infrastructure offers an interface to operate a network of blockchain nodes with a VPN. It also can function as a part of the corporate network, and any blockchain technologies that are operated virtually on the SAM infrastructure can be used.

SAM Token

All services provided by SAE as well as the purchase of power and SAM Cubes will be paid in SAM tokens. This includes renting and buying mining units, electricity supply from SAM power plants, and hosting blockchains on decentralized SAM Cubes. The ICO for SAM tokens is scheduled for June 2018.