The telegram group, founded on May 1 by Arseniy Grusha, co-founder of the US-based cryptocurrency consultancy and Bergmann Wattum, contains several complaints about Bitmain products, especially the Antminer S17 +. “I have never seen such a faulty production” Grusha wrote on his LinkedIn page on May 4th. “If you have a similar problem, I’ve set up a telegram group where you can share your experience with the latest rates from these miners.”
30% reported a failure rate
In an interview with Cointelegraph, the mining company said that after a month-long delay in March due to the COVID 19 pandemic, his company received 420 Antminer S17 + devices. According to him About 30% of the machines failed after just one month. Typically, faulty miners only make up 5-7% of the total orderGrusha pointed this out.
32 of the units stopped working due to the error “ERROR_SOC_INIT”, while 99 only work with one or two of three hash boards, whereby according to Grusha 80% of the last group apparently have this problem directly ex works.
“Some of the miners just stopped working,” He explained that all miners purchased had used the latest official Bitmain software. “The other side has bad hashboards and their performance is 30-60% lower.”
The Wattum manager has already contacted Bitmain, who apparently has assigned him a specialist and a new firmware. “We’ll get results in a few days,” Grusha told Cointelegraph, adding:
“But we still have 32% of the bad units. They should be shipped to China, and as a result, we lost money in mining before we cut in half and [tendremos que] Wait two months for the repair, which of course does not benefit us. “
When asked if he wanted to go to court, Grusha replied:
“I applied for compensation and asked to send new miners to replace the bad miners. Let’s see what they answer first.”
Other members of the group, which had nearly 140 members after its formation on May 1, reported similar failure rates. Mike Hamilton, chief technology officer at New York-based power company Griid, shared his experience after receiving a large amount of Antminer S17 50T units:
“We have around 700/1800 machines with at least 1 hashboard after 3 months. Approximately 300/1800 with at least 2 failed hashboards and probably 150/1800 with all 3 hashboards and / or power supply errors. “
Matt D’Souza, CEO of Blockware Mining, recalled a 19% error rate after using 1,000 Antminer S17 + units in a hosting facility on freight containers. After starting another 1,250 miners of the same model in another facility, the error rate was reduced by 2%.
In early April, Samson Mow, chief strategy officer of blockchain infrastructure company Blockstream, tweeted that Bitmain customers with Antminer S17 / T17 devices had a failure rate of 20-30%. Mow also speculated that Bitmain’s CEO, Jihan Wu, will blame the designated co-founder for the problems and “ask customers to give the S19 a chance.”
As Cointelegraph previously reported, Antminer S19 is designed to increase mining output after halving bitcoin, making it more difficult to mine new coins. Bitmain fully sold its first round of Antminer S19 domestic batches within 24 hours, while the units were not delivered until the earliest May 11th, which is roughly the same day the cut in half.
Cointelegraph asked Bitmain for a comment, but hasn’t heard from the company yet. This story will be updated when we get an answer.