Introducing the Bitmain Antminer S19 XP: Is It Worth It?

Bitmain unveiled the Antminer S19XP back in 2021, igniting the curiosity of cryptocurrency enthusiasts and miners alike. With impressive features such as a hashrate of 140 TH and a power consumption of 3010 W, this new addition to the Antminer S19-series came to revolutionize the mining rig market.

However, before jumping to conclusions based solely on these specifications, it's important to examine the potential risks that could place the Asic S19 XP in line with its predecessors. In this article, we will have a detailed comparison between the Antminer S19XP and the Antminer S19 Pro, explore their profitability to determine whether the newcomer is truly as powerful as it seems.

Table of Contents

A Brief History

Bitmain Antminer S19 XP vs Antminer S19 Pro: Technical Specifications

The Bitcoin Mining Difficulty and the Initial Assumptions

Comparing the Mining Profitability of Bitmain Antminer S19 XP vs Antminer S19 Pro

HODLing and the Mining Profitability

BTC Price Projections

What's the Better Alternative?

Final Words

A Brief History

Bitmain’s Antminer series has long been synonymous with innovation in cryptocurrency mining. Since its inception, the series has delivered consistent advancements, enhancing mining efficiency and profitability. From the groundbreaking S9 to the robust S19 Pro, each model has addressed key challenges in mining, such as energy consumption and rising mining difficulty. The S19 XP represents the culmination of these efforts, boasting state-of-the-art features tailored to the needs of modern miners.

Why the Antminer S19 XP Matters

The Bitcoin mining landscape has evolved significantly, with escalating difficulty levels and increasing energy costs. The Antminer S19 XP addresses these challenges with its exceptional efficiency and performance. Its reduced power consumption and higher hashrate make it a cost-effective solution for miners looking to maximize ROI in an era of tightening profit margins. Furthermore, the S19 XP’s advanced design aligns with sustainability goals, offering miners a greener alternative to traditional rigs.

Bitmain Antminer S19 XP vs Antminer S19 Pro: Technical Specifications

The table below compares the technical specifications of Bitmain Antminer S19XP and Antminer S19 Pro Bitcoin mining machines:

 

Let's see what each item is:

• Hashrate (TH/s): The computational power of the Bitcoin mining machine, measured in terahashes per second.
• Consumption (W): The power consumption of the mining machine, measured in watts.
• Efficiency (W/TH): The energy efficiency of the mining machine, measuring how many watts are required to produce one terahash of computational power (the lower, the better).
• CapEx ($/TH): The capital expenditure per terahash of computational power, representing the cost efficiency of the mining machine (the lower, the better).
• CapEx (Total): The total capital expenditure required to acquire the mining machine, taking into account the number of terahashes purchased and the corresponding cost per terahash.

As the table shows, the Miner S19 XP performs more strongly in all areas. It comes with a higher hashrate, consumes less energy, is more efficient, and requires less expenditure to perform its computational tasks.

ASIC Value Analysis

S19 Pro 110 TH and Profitability

The S19 Pro delivers reliable performance with a hashrate of 110 TH/s. It’s a solid choice for miners prioritizing lower upfront costs. However, its efficiency of 29.5 W/TH and higher power consumption can impact profitability in regions with elevated electricity costs.

S19 XP 140 TH and Profitability

The S19 XP, with its groundbreaking efficiency of 21.5 W/TH, significantly reduces operational expenses. Despite a slightly higher initial cost, its advanced performance ensures better long-term profitability. For miners in energy-regulated regions, this efficiency translates to substantial savings.

The Bitcoin Mining Difficulty and the Initial Assumptions

The escalating deployment of cutting-edge ASICs by North American mining companies, coupled with Chinese miners relocating their rigs abroad, has led to a rapid increase in Bitcoin mining difficulty. To compare the economic viability of the Asic S19 Pro and the Asic S19 XP, we assume that the upward trend in the mining difficulty will persist, with a 100% annual rise.

Considering lead times for ordering and receiving the S19 Pro, we anticipate being approximately six months ahead of the Miner S19 XP in our comparison. In Bitcoin mining, uptime is crucial, and six months represents a substantial duration. Consequently, we estimate the starting difficulty for the Antminer S19 Pro at approximately 23 T and for the Antminer S19XP at around 35 T. This analysis spans 2.5 years for the Miner S19 Pro and 2 years for the Miner S19 XP, both by the end of Q2 2024.

Additionally, we simulate a conservative scenario by increasing the BTC price by 50% per year, enabling us to assess the tradeoff between the S19 Pro's lower hashrate and efficiency compared to the Miner S19 XP's superior specifications.

Comparing the Mining Profitability of Bitmain Antminer S19 XP vs Antminer S19 Pro

Now, let's dive into the exciting part and compare the profitability of the S19 Pro and S19 XP. According to tests conducted using Braiins' Profitability Calculator, the Miner S19 XP demonstrates a respectable end profit of nearly $20,000 and an annual Internal Rate of Return (IRR) of 28%, making it a sound investment. However, due to its longer timeframe and lower difficulty, the Antminer S19 Pro edges ahead with a slight advantage of $1,610 in profit by the end of Q2 2024.

Nevertheless, the crucial metric to consider is the Total BTC Mined. Over the given timeframe, mining with the Antminer S19 Pro yields 0.273 BTC, while the Asic S19 XP only generates 0.208 BTC. Even if we extend the Asic S19 XP's duration to 30 months, it still falls short, accumulating only 0.229 BTC. This emphasizes the significance of accounting for difficulty growth when evaluating a Bitcoin mining machine investment.

The investment's outlook can significantly differ when analyzed in terms of fiat currency versus BTC. If your goal is to increase BTC exposure through mining, it is advisable to hold profits in BTC rather than convert to cash regularly. In this regard, the S19 Pro's headstart with lower BTC difficulty provides it with a competitive edge.

HODLing and the Mining Profitability

Holding onto the remaining BTC mining rewards after covering operating expenses enormously impacts profitability. The S19 Pro yields a final profit of $36,193, while the Asic S19 XP reaches $28,863 by Q2 2024.

In essence, the extended lead time proved costly in BTC terms, despite its success in fiat terms. When purchasing Bitcoin ASICs, it is vital to find a reliable ASIC broker for prompt delivery, enabling early hashing and generating discounted Bitcoin cash flow before difficulty levels rise.

Key Factors to Consider Before Buying an ASIC Miner

• Delivery Lead Times. Delays in receiving mining hardware can impact profitability. Opt for reliable suppliers with proven delivery records.

• Warranty and Support. Comprehensive warranty and responsive support services are essential to mitigate downtime and maintain operations.

• Total Cost of Ownership (TCO). Evaluate the TCO, including power consumption, maintenance costs, and potential downtime.

• Custom Firmware. Custom firmware, such as BiXBiT’s, enhances mining efficiency and allows overclocking, extending the lifespan and profitability of older rigs.

How to Optimize the Performance of Your ASIC Miner

• Overclocking Tips

Overclocking increases hashrate but requires careful monitoring to avoid overheating. Utilize custom firmware to optimize settings for maximum output.

• Immersion Cooling Systems

Immersion cooling reduces thermal stress, improves efficiency, and prolongs the lifespan of ASIC miners. It’s particularly beneficial for high-performance rigs like the S19 XP.

• BiXBiT Firmware Benefits

BiXBiT’s firmware offers advanced overclocking capabilities and energy optimization, making it an invaluable tool for miners seeking to maximize returns.

BTC Price Projections

Bullish Scenario

A 50% annual increase in BTC price could amplify profitability, with the S19 XP achieving a net profit of $30,000 over two years. The S19 Pro, despite lower efficiency, benefits from its head start, yielding comparable returns.

Bearish Scenario

In a stagnant or declining BTC market, the S19 XP’s efficiency becomes its key advantage, ensuring profitability even under challenging conditions. The S19 Pro, with higher energy costs, faces tighter margins.

What's the Better Alternative?

It's now evident that uptime plays a critical role in the profitability of Bitcoin mining operations. Although the Asic S19 XP showcases impressive specifications, the substantial risk associated with its long lead times cannot be overlooked. As an early customer of a new mining rig, uncertainties regarding durability and failure rates further elevate the potential risks.

Thus, it's worth exploring alternatives to acquiring new equipment. Overclocking existing mining rigs can be a viable solution, allowing miners to maximize their computational power without the uncertainties and risks associated with purchasing new machines. Optimizing the performance of current hardware helps miners achieve comparable results to the Miner S19 XP or S19 Pro.

Final Words

Ultimately, the decision to invest in the Antminer S19XP or S19 Pro should be carefully weighed against the associated risks and the availability of alternatives. Prioritizing uptime and considering overclocking existing equipment may prove to be a more practical and cost-effective approach in navigating the ever-evolving landscape of Bitcoin mining.

The good news is that BiXBiT offers custom firmware for various ASIC models. BiXBiT’s firmware increases your ASIC’s performance and energy efficiency and helps it work in an immersion cooling environment.