How Bitcoin farms are built and operated
To mine Bitcoin, both industrial and individual miners assemble so-called "farms," which may consist of graphics processing units (GPUs) or specialized cryptocurrency mining devices (ASICs).
How was Bitcoin mined?
Bitcoin mining is the process of generating (issuing) new units of the BTC cryptocurrency by adding new blocks to the blockchain.
Miners perform complex mathematical computations to solve cryptographic puzzles. Solving one results in the creation of a new block containing verified transactions, which is then added to the blockchain. For successfully adding a block, a miner receives a reward in the form of newly issued BTC and transaction fees.
Initially, Bitcoin was mined using CPUs in home computers. But as the network's computational difficulty increased, CPUs were replaced by more powerful GPUs.
In 2014, ASIC devices (Application-Specific Integrated Circuits), specifically designed for Bitcoin mining, entered the market. These devices significantly outperformed GPUs, enabling mining on an industrial scale.
Over time, as mining became more competitive and computationally demanding, miners began building Bitcoin farms — specialized facilities containing many interconnected computing devices, typically ASIC miners.
Later, miners started to unite into mining pools — organized groups of miners and farms working together to solve cryptographic puzzles and find new blocks. This collaboration significantly boosted the overall hash rate of the group, increasing the chances of earning rewards.
The Bitcoin network operates on the Proof-of-Work (PoW) principle, where the probability of finding a new block is directly proportional to the total computational power (hash rate) involved. Hence, the higher the hash rate of a mining unit or pool, the greater the chance of successfully mining a block and earning rewards.
In a pool, the mined blocks and their associated rewards (new BTC and transaction fees) are distributed among participants in proportion to each member's contribution to the total hash rate.
Thus, mining pools offer an efficient collective strategy that allows participants, regardless of their hardware scale, to receive regular profits from shared efforts.
Types of Bitcoin mining farms
To build a mining farm, Bitcoin enthusiasts and entrepreneurs typically choose ASIC devices due to their high performance, energy efficiency, and ease of deployment.
Industrial miners often construct dedicated facilities in regions with access to cheap electricity, a key factor for mining profitability.
Each such Bitcoin farm can house thousands of mining machines. Essentially, industrial farms resemble data centers (DCs), but are focused solely on Bitcoin mining.
The majority of industrial farms are located in the U.S., Europe, and Asia, particularly in countries with favorable infrastructure, such as China (before restrictions), Kazakhstan, Canada, Iceland, and certain U.S. states. These regions have become global hubs for Bitcoin's computational power.
Large-scale farms vary based on the type of electricity they use. Some rely on renewable or "green" energy sources (solar, wind, geothermal), while others utilize nuclear or hydroelectric power.
For small-scale miners with just a few ASICs, it's nearly impossible to compete with these giants due to the massive disparity in computational power. In such cases, the odds of independently mining a block are virtually zero.
Therefore, joining a mining pool is the safest option for small miners. Still, there have been rare cases where solo miners succeeded.
The most recent case occurred in early July 2025, when a solo miner using a farm with just 2.3 PH/s (petahashes per second) successfully mined 3.17 BTC, worth approximately $350,000. Experts estimated the chance of such a success at 1 in 2,800.
Features of industrial Bitcoin farms
Modern Bitcoin farms are designed with a modular architecture, utilizing standardized blocks or modules that house equipment racks, power supply systems, cooling units, and monitoring systems.
This modularity allows for high flexibility and scalability, enabling quick expansion or upgrades without a complete facility overhaul. It also significantly reduces the costs of building a mining farm.
Large farms also emphasize comprehensive security, encompassing both physical and digital aspects. Physically, equipment is protected against theft and unauthorized access via multi-level video surveillance systems, secured perimeters with access control, biometric or RFID access, backup power supplies, and emergency alert systems.
Cybersecurity is equally critical. Modern farms operate on specialized firmware and are connected to remote monitoring systems, making them potential targets for cyberattacks, including DDoS attacks, API key hacks, or malicious firmware replacements.
To counter these threats, farms implement network security measures, including segmented internal networks, VPNs, firewalls, intrusion detection and prevention systems (IDS/IPS), and regular software audits and updates.
In terms of scale, infrastructure, and investment, industrial Bitcoin farms function more like full-fledged manufacturing enterprises rather than simple digital operations. As such, large miners must comply with a broad spectrum of legal and regulatory requirements, which vary by jurisdiction.
Key considerations include business licensing, company registration, tax compliance, electricity and environmental regulations, and cooperation with utility providers.
Failure to comply with legal norms can result in financial losses, reputational damage, criminal liability, or even complete shutdown of the business.