AltMiner Review – Bitcoin Mining Solution

AltMiner, the innovative cloud-based mining product introduced by Altonomy, once offered a unique opportunity for international institutions and large investors seeking long-term exposure to Bitcoin. This tailored mining solution allowed investors to gain a stake in Bitcoin mining without the operational complexities and overhead costs associated with setting up and maintaining mining equipment. However, it's important to note that AltMiner is no longer available. In this article, we'll delve into the details of what AltMiner offered during its active period and explore the broader implications it had for the crypto mining landscape.

What is AltMiner?

AltMiner was a cloud-based mining product launched by Altonomy, a leading trading desk, market maker, and asset manager for cryptocurrency assets and derivatives. AltMiner was specifically designed for international institutions and large investors who seek long-term exposure to Bitcoin. This product allowed institutions to gain exposure to Bitcoin mining without the need to cover mining overheads such as setup fees, hosting costs, and utility expenses. AltMiner products had a minimum buy-in of $500,000 and come with a two-year contractual commitment. Payouts were issued daily in Bitcoin and are proportional to the owner's hashrate and the hashrate of the entire Bitcoin Network. It offered a way for institutions to recoup Bitcoin generated by advanced mining technology.

Features of AltMiner

During its active period, AltMiner by Altonomy offered several key features and benefits for international institutions and large investors seeking long-term exposure to Bitcoin. Here are the notable features of AltMiner:
  1. Cloud-based mining. AltMiner provided a cloud-based mining solution, eliminating the need for investors to set up and maintain physical mining hardware. This approach simplified the process and reduced operational complexities.
  2. Institutional focus. AltMiner was tailored specifically for international institutions and large investors, making it accessible to entities with substantial capital to invest in Bitcoin mining.
  3. Low relative cost. AltMiner aimed to offer high-quality miner exposure at a lower relative cost compared to retail-focused mining alternatives. This cost-effective approach made it appealing to institutional investors.
  4. Minimum buy-in. AltMiner products had a minimum buy-in requirement of $500,000, ensuring that participants were committed institutional investors.
  5. Two-year commitment. Each AltMiner product was sold as a two-year contractual commitment, providing investors with a longer-term exposure to Bitcoin mining.
  6. Daily Bitcoin payouts. Investors received daily payouts in Bitcoin, with the amount proportional to their hashrate and the hashrate of the entire Bitcoin Network. This provided a steady stream of Bitcoin income.
  7. Ownership of equipment. Altonomy owned the underlying mining equipment, relieving investors of the responsibility of equipment procurement, setup, and maintenance.
  8. Advanced technology. AltMiner was backed by sub-10 nanometer Bitcoin mining processors, leveraging advanced technology that was challenging to procure independently.
  9. Oversubscription. The first batch of AltMiner products quickly garnered substantial interest, with a hashrate capacity for $3 million. It was oversubscribed by more than 300%, highlighting the demand for such products.
  10. Additional capacity. In response to high demand, Altonomy announced a second batch of AltMiner with an estimated capacity for more than $10 million, demonstrating its scalability and potential to attract institutional investors.

AltMiner competitors

During its active period, AltMiner by Altonomy was a unique offering in the cryptocurrency mining space, tailored specifically for institutional investors. While there were not direct competitors offering the exact same cloud-based mining product with similar features, AltMiner operated within the broader context of cryptocurrency mining and investment. Some potential competitors and related entities in the crypto mining industry included:
  • Traditional mining operations. Institutional investors had the option to set up and operate their Bitcoin mining facilities or partner with established mining companies. However, this approach required significant capital investment, expertise in mining operations, and ongoing maintenance.
  • Cloud mining services. Cloud mining providers, such as Genesis Mining and Hashflare, offered mining contracts to retail and institutional investors. These contracts allowed investors to purchase mining power from the provider's mining hardware. However, cloud mining contracts often faced scrutiny for their transparency and profitability.
  • Bitcoin mining pools. Mining pools like F2Pool and Antpool allowed miners to combine their computing power and share rewards. Investors could join these pools or invest in shares of mining pool operations. However, this approach required active participation in pool management.
  • Blockchain infrastructure providers. Companies like Bitmain and MicroBT manufactured mining hardware and sold it to both individual miners and institutional clients. Institutional investors could purchase mining equipment directly, but they would still need to handle setup and maintenance.
  • Cryptocurrency investment funds. Institutional investors interested in exposure to Bitcoin and cryptocurrency assets could consider cryptocurrency investment funds and trusts, such as Grayscale's Bitcoin Trust (GBTC) or Galaxy Digital's Bitcoin Fund. These funds offered indirect exposure to Bitcoin's price movements without direct involvement in mining.
  • Other mining projects. Various blockchain projects and startups aimed to improve the efficiency and sustainability of cryptocurrency mining. These projects introduced innovative mining technologies, renewable energy solutions, and decentralized mining protocols, potentially attracting institutional interest.

The bottom line

While AltMiner is no longer available, it represented a unique opportunity for institutions to participate in Bitcoin mining without the complexities of setting up and maintaining mining hardware. With a minimum buy-in of $500,000 and two-year contractual commitments, AltMiner provided daily payouts in Bitcoin, allowing investors to benefit from the growth of the crypto market. Although the product is no longer operational, its innovative approach showcased the potential for institutions to engage with cryptocurrency mining and secure a steady source of Bitcoin rewards.

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