How Sazmining Works: A Beginner-Friendly Guide to Our Business Model
At Sazmining, we know Bitcoin mining can seem overwhelming, especially if you’re new to the space. That’s why we’re committed to making the process simple, transparent, and accessible to everyone.
In this guide, we’ll explain how mining with Saz works, break down our business model, and leave no stone unturned when answering your questions.
How Sazmining Works
At its core, Sazmining offers Bitcoin Mining as a Service (BMaaS).
Instead of managing your mining operation yourself, we handle everything—from sourcing and maintaining mining rigs to managing them in environmentally friendly data centers.
Here’s how it works:
- Choose a Mining Rig
You select a mining rig based on your budget and goals from our curated list. Each rig has precise details about its performance, estimated revenue, and associated costs. - Managed in Carbon-Free Powered Data Centers
Your rig is managed in one of our carbon-free powered data centers:some text- Norway: Powered by 99% hydropower and bio-gas with a 95% Annual Rig Performance Guarantee*.
- Paraguay: Powered by 100% hydropower with an 80% Annual Rig Performance Guarantee.
- Mine Bitcoin and Earn Rewards
Your rig mines Bitcoin, and rewards are sent directly to your wallet after the following deductions:some text- Management Fee: A percentage (20% in Norway and 15% in Paraguay) of your mining pool payout is automatically split and collected as a management fee through the pool (via Luxor) before the customer payment threshold of 400,000 sats is sent. For more information, see How Bitcoin Mining Payouts Work with Sazmining.
- A monthly service fee, which includes electricity and maintenance costs, is billed separately based on your rig’s energy usage.
These fees are handled independently to ensure transparency and simplicity.
Definition of Rig Performance
*Rig performance reflects the machine’s ability to hash at its average hashrate divided by the nameplate hashrate, accounting for scheduled curtailment and excluding necessary maintenance downtime.
See the Service Agreement posted on our website for more information.
Our Model = Your Benefits
We designed our business model to align with your success and make everything transparent.
Here’s how it works:
Management Fee
A portion of the Bitcoin rewards generated by your rig is split when paid out by the mining pool to cover our management fee:
- 20% in Norway
- 15% in Paraguay
This fee compensates us for managing the operation, optimizing performance, and sourcing high-quality data centers.
Service Fee
The service fee is dynamic and includes:
- Electricity costs: Powering your rig 24/7.
- Maintenance and repairs: Ensuring your rig operates at peak performance.
The service fee estimate is based on 95% Annual Rig Performance in Norway and 80% Annual Rig Performance in Paraguay, reflecting typical operating conditions. While the fee is not capped, the estimate provides a reliable benchmark for planning purposes.
Aligned Incentives
We don’t profit from mining rig sales or marked-up electricity fees. Our revenue comes only from the management fee, so we succeed when you succeed and also feel the pain!
Breaking Down the Numbers
Here’s a closer look at how mining costs and profitability are calculated as of 12/25/2024:
WhatsMiner M63S (Norway Data Center)
Gross Monthly Revenue
$502 = 535,319 sats x BTC price
Estimated Service Fee
- $239
Net Monthly Revenue
$263
- Electricity Rate: $0.046/kWh
- Annual Rig Performance Guarantee: 95%
Management Fee: 80,000 sats (20% of 400,000 sats - the default payout threshold)
- The management fee is automatically deducted at the mining pool level (via Luxor) before your Bitcoin rewards are sent to your wallet. This ensures seamless payouts while reflecting the operational costs of maintaining your rig’s performance.
Bitmain S21 Pro (Paraguay Data Center)
Gross Monthly Revenue
$325 = 346,598 sats x BTC price
Estimated Service Fee
- $141
Net Monthly Revenue
$184
- Electricity Rate: $0.055/kWh
- Annual Rig Performance Guarantee: 80%
Management Fee: 60,000 sats (15% of 400,000 sats - the default payout threshold)
- Deducted directly at the mining pool level (via Luxor) from your Bitcoin rewards.
Bitmain S21 (Paraguay Data Center)
Gross Monthly Revenue
$271 = 288,832 sats x BTC price
Estimated Service Fee
- $141
Net Monthly Revenue
$130
- Electricity Rate: $0.055/kWh
- Annual Rig Performance Guarantee: 80%
Management Fee: 60,000 sats (15% of 400,000 sats - the default payout threshold)
- Deducted directly at the mining pool level (via Luxor) from your Bitcoin rewards.
Why Choose Sazmining?
- Transparency and Trust
Our business model is simple: the management and service fees are clearly explained, with zero hidden charges. You always know what to expect. - Aligned Incentives
Our success depends 100% on your success. We don’t mark up electricity costs or sell mining rigs at inflated prices, so our incentives fully align with yours. - Carbon-Free Energy
Sustainable energy sources power all our data centers, so you can mine Bitcoin while supporting environmentally friendly practices. - Hands-Free Mining
We handle everything from setup to maintenance so you can start mining Bitcoin without the hassle of managing mining rigs and sourcing low-cost, carbon-free power.
FAQs: Clearing Up Any Confusion
1. What is the management fee?
The management fee is a percentage of the Bitcoin rewards split at the mining pool level. It covers operational management, optimization, ongoing support, and our sunk costs in sourcing the data center:
- 20% in Norway
- 15% in Paraguay
This is the only way that Sazmining profits and allows us to align incentives: We take a percentage of the mined Bitcoin, which neither the customer nor Saz can access until it is sent via the Bitcoin protocol.
If you're still confused about how this works, read How Bitcoin Mining Payouts Work With Sazmining.
2. What is the service fee?
The service fee is a monthly charge that covers electricity costs and maintenance. It’s dynamic and based on your rig’s energy usage. Sazmining does not profit from the service fee; it is solely used to pay for electricity and maintain your mining rig.
3. Is the service fee capped?
Yes, it’s effectively hard-capped at 110% (via overclocking and pushing your mining rig to its practical limits). The service fee is calculated based on actual electricity usage, but our estimates reflect typical conditions for your rig. The cost may exceed the estimate if your rig uses more energy, such as the 10% during overclocking.
4. How do I calculate profitability?
Profitability is determined by subtracting the management and service fees from your rig’s gross revenue. Gross revenue is calculated as: Sats Earned × Bitcoin Price = Gross Revenue
Here’s what it looks like as of 12/25/2024:
- Norway (WhatsMiner M63S):
- Gross Revenue: $502
- Management Fee: -$100 (automatically split at mining pool level + part of gross revenue)
- Service Fee: -$239 (paid separately to Saz, not part of gross revenue)
- Net Revenue: $263
- Paraguay (Bitmain S21 Pro):
- Gross Revenue: $325
- Management Fee: -49 (automatically split at mining pool level + part of gross revenue)
- Service Fee: -$141 (paid separately to Saz, not part of gross revenue)
- Net Revenue: $184
5. Are there hidden fees?
No, all fees are transparent and clearly explained upfront.
The only costs to the customer are the management fee (based on gross revenue) and the service fee (based on electricity usage and maintenance costs).
6. How does mining compare to buying Bitcoin?
Mining lets you earn Bitcoin directly from the network, independent of exchange prices or liquidity. It’s a great way to accumulate native Bitcoin ("wild sats") over time, especially if you’re thinking long-term.
Start Mining with Confidence
Bitcoin mining doesn’t have to be intimidating. At Sazmining, we’re here to make the process easy, transparent, and environmentally responsible. With fully managed rigs, aligned incentives, and carbon-free energy, you can focus on growing your Bitcoin stack.
Ready to start mining? 👉 Get started with Saz today!
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