Hashnest S7 Hosted Mining vs S5: Which Is The Most Profitable At Present?

Bitmain introduced trading for Hashnest S7 hosted mining on Friday night October 9. Based on the pre-sale price for hosted mining, which was $1923 for 4860 GH/s fair value would be .0016135 bitcoin/GH/s:

Hashnest S7

As the internal chart at Hashnest shows S7 hash is trading above fair value at about .0019 bitcoin per GH per second. Not a surprise as speculators who bought an S7 to hash will be looking to sell for a profit. But is S7 the better buy than S5? Let’s take a look at recent price action for S5 hash:

Hashnest S5

The price for S5 GH/s bottomed out on October 7 and began a short term uptrend while S7 price is flat.

Based on current price and difficulty here are the numbers for S7 compared to S5:

  • S5 hash would return 0.50% daily and the ROI would be 205 days
  • S7 hash would return 0.31% daily and the ROI would be 330 days

Clearly S5 is the hash to own right now at Hashnest.

Hashnest S5 is Preferable to S7 At Present

Hashnest S5 GH/s not only has the better return but the price of S5 is in a short term uptrend while S7 hash is overpriced and flat. You can buy S5 hash and not only receive daily mining income but sell your hash at a profit if the uptrend continues as expected.

However we do not expect the imbalance between S5 and S7 to last more than a few months. At some point the price of S5 hash will stop its increase and start to decline. We expect that will coincide with lower price of S7 hash. Be prepared to sell any S5 you may own and transistion to S7 hash when that occurs.

Remember block halving happens next summer and at that time S5 hash may be “underwater” if bitcoin price does not increase. Maintenance fees could be greater than payouts. As long as you follow the Hashnest charts and sell your S5 hash when price starts to decline you will be fine. Take your profits and buy S7 hash before the block halving. It is also possible that Hashnest will have a new and more power efficient bitcoin miner than S7 by next summer.

Hashnest Contracts Compared

Thanks to pakerole at Bitmain Talk for 6 month outlook for profitability of the S7, S5, S4 and S3 contracts at Hashnest:

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The chart is based on bitcoin price and difficulty on November 1, 2015. Here is his one year projection:

Hashnest Contract Profitability Projection

At current bitcoin price and difficulty S5 is the best choice. S4 may be slightly more profitable in the next few months but remember S4 can be harder to sell than S5 due to lower daily volume. If you had a large amount of S4 hash and had to sell quickly you might have to take a lower bid than you would like. Also remember as the bitcoin block halving next summer approaches you would probably need to sell all hashing contracts except S7. Unless bitcoin price increased significantly, after the block halving any contract but S7 would no longer be profitable.

  • Lolita Somer

    what if the price of S7 down a little bit, is it any change of that graph? i am not yet buy S7 but i have S5 on 120 ghs, i know that is small amount on GHS, maybe i would buy again after i’ve got btc again.

    • S7 price would have to come down more than a little bit, also uptrend of S5 price would have to flatten out. Right now the hash to own at Bitmain Hashnest is S5 no doubt.

      • Lolita Somer

        yes i agree, i think S5 would be the winner hehe unfortunately, my btc has low, if not, i want to buy more S5 or maybe i want to test S7

  • S7 price cannot stay at overpriced .0019 at some point price will drop to .0016 that is the time to sell some of your S5 and move into S7.

  • S5 hash has not been able to increase past .000835. We decided to sell our S5 position for a 15% profit in two weeks. Holding cash now waiting for a buying opportunity on S7.

  • Hashnest announced today that another 500 S7 will be put up for sale in Hashnest on November 3 with delivery in 12 days to your Hashnest trading account. Price has not been made public. S7 price is already down on Hashnest now trading at .00184. S5 dropping like a stone also now at .00076.

  • Carlos Castro

    http://www.castrox.com/bit is a good calculator for making decisions about mining contracts or home mining. It takes into account difficulty increase and block halving, which few people take into account.