Fortress Flagship Facility
Fortress Blockchain completed the acquisition of its flagship facility on February 16th, 2018. The 2MW facility is located in Washington State and Fortress plans to expand the facility to 5MW. The facility has a long operational history, having mined Bitcoin since 2014 and is attractively situated due to its access to low-cost, environmentally friendly, renewable hydroelectric energy; the current all-inclusive price of power is $0.026/kWhr. As a result of our operating history and our industry leading PUE, Fortress is able to operate 700 S9 AntMiners per MW.
In our view, a key differentiator at Fortress is the transparency between usable capacity, available capacity and total capacity. Per electrical safety standards, the total load at any given time should be no greater than 80%; therefore 2 MW of usable capacity would imply total capacity of approximately 2.5MW. Fortress chooses not to over-emphasize our mines by advertising total capacity, instead we present usable capacity, which is what the PUE is calculated on. As an example, a PUE of 1.18 on a usable capacity of 2.0MW yields approximately 1.7 MW of available capacity for miners within the usable capacity. In our view, competitors operate between 550-650 miners per MW versus Fortress’ 2MW mine operating 700 miners per MW, and thus 1400 S9 AntMiners in our 2MW facility, the load our circuitry can safely handle year round.
The company received early delivery of 1,400 Bitmain Antminer S9 Bitcoin miners on March 6th, 2018 and installed over 1,000 miners in less than 2 weeks using Fortress’ proprietary mine architecture. Our proprietary mine architecture provides the power density enabling 700 miners per MW of usable capacity. Fortress wholly owns its new machines, all hashing output and 100% of the Bitcoins mined daily. Importantly, we do not use third party facilities, nor are we advertising MaaS co-located machines owned by others. With our initial 2 MW capacity and 1400 miners we will mine roughly 1.4 BTC per day as of March 23, 2018.
The Fortress miner installation process is a sophisticated procedure which allows the hashing output and temperature of every miner to be remotely monitored from anywhere in the world. Furthermore, the hashing output and reward history of each miner is tracked as a result of the IT configuration process used by Fortress. Each Antminer S9 employs 189 Bitmain BM1387 chips and is currently the world’s most efficient Bitcoin mining chip in the consumer market. Each S9 miner delivers a hash rate of 13.5TH/s. With 1400 miners in the 2MW facility, we have a total hash rate of 18.9PH/s and an industry leading 9.45PH/s/MW.
The Fortress flagship mine can be expanded to 2.5MW of usable capacity with the addition of a subsequent 600 kVA on-site transformer. This procedure is in process, and will bring out total miner capacity to 1,750 miners. We expect this to be completed by May 2018 and intend to build out to 5MW by the end of Summer 2018.