Feeds

Bitcoin mining rig firm claims $3m revenue in just FOUR DAYS

Mining machine manufacturers sell out as currency spikes

High performance access to file storage

It is said that during a gold rush, the people who make the real money are the ones selling the spades.

The same appears to be true with Bitcoin, judging by the whacking great revenues announced by a firm which makes computers dedicated to mining the cryptocurrency.

KnCMiner, a Swedish manufacturer of Bitcoin mining machines, told us it made $3m worth of sales in just four days earlier this month.

During this bumper sales period, which started on November 7th and ended on the 10th, the value of Bitcoin skyrocketed from $264 to $336.

KnCMiner was founded in April this year and is one of the victors in what it described as a "digital gold rush”.

“While we have seen a significant increase in demand for our line of machines from the last quarter to this one, what happened in the last four days has been unprecedented for us, maybe unprecedented anywhere in the Bitcoin mining industry, said KnCMiner CEO Andreas Kennemar.

"In four short days, we pushed $3m of equipment out the door. The increased activity around Bitcoin in just half a week undoubtedly had a sizable impact on our sales. We’re now focusing on doing everything we can to meet the demand we expect we will continue to receive, especially as Bitcoin’s popularity continues to soar.”

KnCMiner also flogged $600,000 worth of upgrade modules to miners who had already bought rigs. In total, the Swedish firm has managed $29m worth of sales and has shipped its gear to 120 countries. All in all, the seven-month-old firm has sold 5,000 mining machines.

Bticoin mining rigs are computers dedicated to generating new Bitcoins by solving complex mathematical problems and hashing them, which process is explained in this article. The hash stage is necessary to ensure the validity of the currency – full technical details are available on the Bitcoin website.

It used to be the case that an ordinary graphics processing unit (GPU) was fast enough to solve the hashes, but as more Bitcoins are created the successful hashes necessary to generate them have been getting more and more difficult, leading to a need for dedicated mining machines.

Bitcoin was created by “Satoshi Nakamoto”, a shadowy and (not quite) unidentified character who was never heard of before the cryptocurrency's creation. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
Jeff Bezos reveals Amazon's brutal scale in annual letter
Bit-flipping retail mogul seems hybrid of Ford and Rockefeller
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.