Third, miners with access to cheaper energy have a huge advantage. If energy is 70% of your costs and you can save 50% of energy, you’ve just reduced costs by 35%, leading to a dramatic increase in margins. Other business benefits are important—firmware, cooling, taxes, staff, access to capital, uptime, etc.—but the 800-pound gorilla is your electric bill. If you have a significant cost disadvantage that is 70% of your expenses, then regardless of your other advantages, your business is on top; cheaper energy supplies will be pumped somewhere in the world until you throw up the white flag and auction off your assets.

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