Kucoin's Bitcoin Cloud Mining Is Back! Is It Still Worth It?

Asan avid crypto enthusiast and HODL-er looking for ways to expand my avenues of passive income, the idea of cloud mining has always appealed to me. I was very excited when the first phase of Kucoin Cloud mining launched; I wasted no time in subscribing to it. The 3rd phase of Kucoin’s Bitcoin cloud mining plans have launched today, much to my excitement! As such, I will be providing a follow-up review of my earnings from the first phase of Kucoin’s cloud mining service thus far, so that you can make an informed decision on how worthwhile is this mining plan.


A Recap

I purchased a 180-day mining plan with a 5T hashrate from Kucoin, which commenced mining on 9th March 2022, at a cost of 116.7USDT.

My earnings so far of 41 days are summarized below.

Summary by month

Daily breakdown of earnings for the past week.

Displaying this in a graphical format gives the following graph.

The apparent increase in my mining income on 16th April 2022 was due to the fact that I had chosen to utilize my prepaid USDT to pay for electricity fees, instead of having it deducted from my mined BTC.


Some Calculations

I have, in total, mined for 41 days. For the purpose of calculation below, I will exclude the last 2 days of mining whereby my electricity fees were prepaid by USDT.

As such, total BTC mined over 39 days = 0.00058972 BTC

Cost of my mining plan for 39 days = (39/180) x 116.7 = 25.285 USDT

Given the current BTC price of $39000, earnings of 0.00058972 BTC translates into 22.99 USDT. This does not seem profitable when compared to the cost of my mining plan for the same duration of time (25.28 USDT), having taken into account electricity fees.

As such, we can conclude that the profitability of this mining plan largely depends on the price of BTC, as a relatively fixed amount of BTC is earned per day regardless of its market price.

Dividing the cost of my plan by the amount of BTC mined gives 25.285/0.00058972 = 42,876.

In other words, for my mining plan to become profitable, BTC needs to break above $42,876.


New Mining Plans

Kucoin has launched its 3rd phase of cloud mining plans today, apparently running on a new miner, the Whatsminer M30S++.

The projected yield is somewhat lower than when the first round of plans were launched as shown below, likely due to a decline in the price of BTC since then.


How To Improve Earnings?

Electricity fees account for a significant deduction of the earnings. When the price of BTC drops, the amount of BTC used to pay for electricity fees increases.

Note that the amount of BTC used to pay for electricity fees increases when the price of BTC dumps.

Hence, a strategy would be to pre-pay for electricity fees in USDT, which can be done throughout the course of the mining plan, or only toggled on when the price of BTC is low. To opt for electricity fee deduction in USDT, firstly ensure that you have sufficient credit balance in USDT, which you can top up under the “Electricity Management” section of your dashboard as shown below. On average, electricity fees amount to 0.3 USDT per day.

Once you have recharged your pre-paid funds, head over to “Orders” on your dashboard, and note the electricity fee deduction toggle on the lower right corner.

Turning this toggle off deducts electricity fees from the pre-paid USDT; and vice versa.


How To Purchase A Mining Plan?

Sign up for Kucoin here, if you don’t already have an account.

Go to Cloud Mining > Select the corresponding product > Click Buy Now > Enter the amount of hashrate to purchase > Select whether you want to prepay the electricity fees > Submit the order > Click Pay > Complete verification > Complete the payment.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s