Mining Bitcoin has never been simpler
or more efficient

For a clear explanation of what Bitcoin is and how its mining works, we recommend following the most well-known Czech Bitcoin educator Jakub Vejmola, also known as Kicom, on his Bitcoin channel. If you are new to the world of cryptocurrencies, we suggest watching all of his fundamental videos.

Bitcoin mining serves two key roles in the network. The first is ensuring network security through energy-intensive mining, and the second is motivating participants to keep the network running.

Bitcoin is a decentralized network without a central authority managing transactions. There are two types of nodes: a full node maintains a synchronized ledger across the network, while a miner node (miner) secures the network by validating and closing blocks, earning rewards for mining.

Users themselves are responsible for maintaining the network. Bitcoin mining originally started on CPUs and later moved to GPUs. Today, however, specialized ASIC miners dominate, and miners often join mining pools to increase their chances of earning rewards.

Ongoing service is performed on a daily basis. We continuously monitor temperature, humidity, and airflow, while also automatically restarting or, if necessary, shutting down machines in case of issues, freezes, or communication failures with the mining pool. This is standard operational monitoring, in which we do not significantly stand out from the competition—and we sincerely hope that other operators follow similar practices.

As for repairs, the most common failures involve power supplies, specifically capacitors and MOSFET bridges, which can “burn out” due to long-term thermal stress or develop other types of defects. Another frequent issue involves temperature sensors, which are continuously exposed to a combination of high temperatures and humidity.

Failures also occur on hash boards, particularly in the DC-DC regulation section, where MOSFET bridges convert voltage—typically from 12V to significantly lower levels—while handling very high currents. Fortunately, these repairs are usually quick and relatively inexpensive. However, if the ASIC chips themselves are damaged, it becomes a more complex intervention that can take two to three weeks. Even then, the repair is not extremely costly, as each faulty ASIC chip is charged individually.

All repairs—whether related to power supplies, control boards, or hash boards—typically range between approximately 50 and 150 USD per intervention. In practice, total repair costs usually do not exceed 100–200 USD per machine per year. On average, failures occur two to three times per year, which over a two-year period results in costs of roughly 400–600 USD. We cover these costs during the first year; in subsequent years, repairs resulting from normal hardware wear are charged to the customer. These repairs are not considered warranty claims, as they result from natural wear and tear—similar to a high-mileage car, where worn tires cannot be claimed under warranty.

In addition to the standard machine offering, we also provide a Guaranteed Performance service, which can be purchased for any device. The service costs 600 USD and is contracted for a period of two years. In the event of your machine going offline, we immediately cover its performance with another device within minutes, so you will hardly notice any downtime. All service costs during the entire period of this service are fully covered by us.

This service was developed based on years of operational experience, detailed analysis of failure rates and service times, as well as feedback from clients who had to wait for repairs. The resulting solution is a logical outcome of these insights.

Risks are everywhere, especially in the world of cryptocurrencies and investments in them.

Because you are not investing your money directly into purchasing cryptocurrencies, you are not immediately exposed to the risks associated with them. Yes, you will certainly feel the changes, but not as intensely as a direct cryptocurrency investor.

Return on Investment (ROI) is a theoretical calculation that depends on many variables, which also change over time. The calculation itself is simple: you sum the purchase price of the machine and the monthly electricity costs, and subtract the monthly income from cryptocurrency mining after deducting the operational fee.

Example:

If the purchase price of the machine is 5,000 USD, monthly electricity costs are 200 USD, and the machine generates a monthly income of 450 USD after operational fees, the return on investment is 21 months.

However, the main risks are associated with the following factors:

1. Energy and political stability In general, the biggest risk in cryptocurrency mining is the cost of energy and political stability. Unfortunately, as you surely know, these two factors have been quite volatile recently in the Czech Republic and especially in Central Europe.

We have tried to minimize this risk by selecting a politically and energetically stable location. Key parameters for us include low taxation, cheap energy, support for the digital industry, and a stable political environment with a clear long-term outlook.

2. Exchange rate Cryptocurrencies are known for their frequent price fluctuations. Our stated ROI is based primarily on a strategy of immediately converting mined cryptocurrencies into fiat currency, such as the US dollar (USD).

Additionally, we assume that the price of the cryptocurrency remains stable over time, as shown in the example above. If the price of the machine remains unchanged but, for example, Bitcoin increases by 100% and stays at that level, it is clear that the ROI would effectively decrease by 50%.

3. Hashrate Hashrate can be simply described as the level of difficulty involved in mining cryptocurrencies. If the number of miners increases, the hashrate increases as well. If miners disconnect their machines (for example due to rising energy costs), the hashrate decreases, giving you the opportunity to mine more.

4. Halving Halving is an event that occurs approximately every four years and reduces the reward for mining Bitcoin by half. This event is built into the Bitcoin protocol and is designed to limit inflation by gradually reducing the number of newly generated bitcoins.

Halving has a significant impact on Bitcoin’s market economy, as it affects the supply of new coins and can influence the price of Bitcoin in the long term.

You sign the first contract with Galosoft CRYPTO s.r.o., and it is an agreement for the provision of a device for mining virtual assets. The contract defines all relevant terms, including warranty, ownership, and delivery timelines. You are the sole owner of the machine as our customer. You can request shipment of the machine at any time to any location, or you can collect it in person and transport it yourself, which is often financially comparable for a single unit.

The second contract is signed with Galosoft s.r.o., and it is an agreement for the management of the mining device. This covers payment for the electricity consumed by the machine and a 10% fee, which will be deducted monthly from the mined cryptocurrency. This fee represents our compensation for providing services related to mining, including taking care of your machine, troubleshooting, and communication with the data center or the supplier of the machine or electricity. We also handle monitoring and management of the mining process, payment of electricity consumption, and provide consulting.

This agreement is signed for a period of 12 months. After this period, you can take over the machine and its mining operations yourself, or extend the agreement with us for another 12 months or for an indefinite period.