What is Softwar about?

Softwar is a groundbreaking book by Major Jason Lowery that positions Bitcoin as a revolutionary national security technology. It reveals Bitcoin's true purpose: not merely digital currency, but a defense technology that projects physical power into cyberspace through proof-of-work.

Major Jason Paul Lowery is a U.S. Space Force Astronautical Engineer with 28 years of military service. He currently serves as an MIT National Defense Fellow, advising senior U.S. military leaders about Bitcoin's national strategic implications. He holds an MS from MIT and a BS from Baylor University.

Why was Softwar restricted by military authorities?

The book was ordered removed from distribution by military authorities, likely due to its strategic insights about Bitcoin's role in national defense. Despite restriction attempts, it's now available through civilian channels and has sold over 50,000 copies.

What is the electro-cyber dome concept?

The electro-cyber dome is Lowery's concept describing how Bitcoin's proof-of-work creates an unprecedented defensive shield protecting digital infrastructure. It converts electrical energy into unbreakable digital security, similar to how physical walls protect physical territory.

Where can I buy Softwar?

Softwar is available on Amazon in paperback, Kindle digital, and Audible audiobook formats. The book has 365 pages and is ISBN 9798371524188.

How to Assess Bitcoin Mining Infrastructure: Evaluation Framework

Quick Answer

Assess Bitcoin mining infrastructure by evaluating seven factors: power capacity (megawatts available), energy costs ($/kWh), facility specifications (cooling, space, redundancy), hardware deployment (hash rate per MW), operational efficiency (uptime, maintenance), economic viability (ROI timeline), and strategic positioning (grid integration, energy independence). World-class operations achieve >98% uptime at <$0.04/kWh with efficient cooling and grid services.

Infrastructure Assessment Framework

1. Power Capacity Analysis

Primary Metric: Megawatts (MW) of electrical capacity

Formula:

Available Mining Capacity (MW) = Total Electrical Capacity - Critical Loads - Safety Margin

Evaluation Tiers:

Capacity	Scale	Typical Operation
<1 MW	Hobby/Small	Home/garage mining (50-300 miners)
1-5 MW	Small Commercial	Regional mining operation (300-1,500 miners)
5-50 MW	Medium Commercial	Industrial facility (1,500-15,000 miners)
50-200 MW	Large Enterprise	Major mining campus (15,000-60,000 miners)
>200 MW	Hyperscale	National-level operation (60,000+ miners)

Example Calculation (50 MW facility):

Total Electrical Capacity: 55 MW (substation rating)
Critical Loads: 2 MW (offices, cooling controls, lighting)
Safety Margin: 3 MW (15% reserve)
Available for Mining: 50 MW

Hash Rate Potential:

Miners per MW: ~285 Antminer S21 (200 TH/s each, 3.5 kW)
Total Miners: 50 MW × 285 = 14,250 miners
Total Hash Rate: 14,250 × 200 TH/s = 2.85 EH/s (~0.6% of global hash rate)

Key Questions:

Is power supply dedicated or shared with other industries?
Can capacity scale (expandable substation)?
Redundant power sources (backup generators, dual feeds)?

See: Mining Infrastructure and National Power

2. Energy Cost Evaluation

Critical Metric: Cost per kilowatt-hour ($/kWh)

Profitability Thresholds:

Energy Cost	Profitability	Recommendation
<$0.03/kWh	Highly Profitable ✅	Excellent location, scale aggressively
$0.03-0.05/kWh	Profitable ✅	Good location, proceed confidently
$0.05-0.07/kWh	Marginal ⚠️	Monitor Bitcoin price, efficiency critical
$0.07-0.10/kWh	Breakeven Risk ⚠️	Only with exceptional hardware efficiency
>$0.10/kWh	Unprofitable ❌	Avoid unless strategic reasons

Energy Source Assessment:

Renewable Energy (preferred):

Hydroelectric: ~$0.02-0.04/kWh (best cost + sustainability)
Wind: ~$0.03-0.06/kWh (intermittent but cheap)
Solar: ~$0.04-0.07/kWh (daytime only, battery costs increase)
Geothermal: ~$0.03-0.05/kWh (stable, renewable)

Fossil Fuels:

Natural Gas: ~$0.03-0.06/kWh (abundant, flexible)
Coal: ~$0.04-0.07/kWh (cheap but regulatory risk)
Flare Gas Capture: ~$0.01-0.02/kWh (stranded energy monetization)

Nuclear:

Grid Nuclear: ~$0.05-0.08/kWh (stable, zero carbon)
SMR (Small Modular Reactors): Future potential (~$0.04-0.06/kWh)

Questions:

Is pricing fixed or variable (spot market risk)?
Long-term contracts available (price stability)?
Demand response programs (paid to shut off during peak demand)?
Stranded energy opportunities (curtailed renewables, flare gas)?

See: Bitcoin Mining and Energy: The Strategic Connection

3. Facility Specifications

Space Requirements:

Mining Density:

Space per Miner: ~1-2 square feet (rack-mounted)
Aisle Space: 4-6 feet (maintenance access)
Total Space Factor: ~3-4 sq ft per miner (including aisles, staging)

Example (10,000 miners):

Gross Floor Area: 10,000 × 3.5 sq ft = 35,000 sq ft (~0.8 acres)
Plus: Electrical rooms, offices, storage = 45,000 sq ft total (~1 acre)

Ceiling Height:

Minimum: 12 feet (basic airflow)
Recommended: 16-20 feet (optimal cooling, equipment access)

Cooling Infrastructure:

Cooling Methods:

Method	Cost	Efficiency	Climate Suitability
Air Cooling (direct)	Low	Moderate	Cool climates only
Evaporative Cooling	Low	High	Dry climates ✅
Immersion Cooling	High	Excellent	Any climate ✅
Hybrid (Air + Evap)	Moderate	High	Most climates ✅

Power Usage Effectiveness (PUE):

PUE = Total Facility Power / IT Equipment Power

Benchmarks:

Excellent: 1.05-1.10 (immersion cooling)
Good: 1.10-1.20 (evaporative + air)
Average: 1.20-1.40 (air cooling only)
Poor: >1.40 (inefficient design)

Example:

Miners: 50 MW
Cooling: 5 MW (evaporative + fans)
Lights/Offices: 0.5 MW
Total: 55.5 MW
PUE: 55.5 / 50 = 1.11 (excellent ✅)

Electrical Infrastructure:

Voltage: 480V three-phase (industrial standard)
Distribution: PDUs (Power Distribution Units) rated 200-400 kW each
Redundancy: N+1 design (spare capacity for failures)
Monitoring: Real-time power quality, SCADA systems

Internet Connectivity:

Bandwidth: 10-100 Mbps (minimal data, low latency priority)
Redundancy: Dual ISPs, cellular backup (99.99% uptime target)
Latency: <100ms to mining pool servers

4. Hardware Deployment

Miner Selection Criteria:

Efficiency (Joules per Terahash):

Generation	Efficiency	Competitiveness	Lifespan
Latest (2024-2025)	15-18 J/TH	Excellent ✅	3-4 years
Current (2021-2023)	18-30 J/TH	Good ✅	2-3 years
Outdated (2018-2020)	30-50 J/TH	Marginal ⚠️	<2 years
Obsolete (<2018)	>50 J/TH	Unprofitable ❌	0 years

Deployment Density:

Miners per MW: 1,000,000 watts ÷ Miner Wattage
Example (Antminer S21, 3,500W): 1,000,000 ÷ 3,500 = 285 miners per MW

Hash Rate per MW:

Hash Rate per MW = Miners per MW × Hash Rate per Miner
Example: 285 × 200 TH/s = 57,000 TH/s = 57 PH/s per MW

Investment Calculation:

Hardware Cost per MW: Miners per MW × Miner Price
Example: 285 × $3,500 = ~$1 million per MW (hardware only)

Questions:

Mix of miner models (hedge against obsolescence)?
Purchasing vs. hosting (capital vs. operational model)?
Replacement schedule (maintain efficiency as models improve)?

5. Operational Efficiency

Uptime Targets:

Uptime	Downtime/Year	Rating	Lost Revenue (50 MW)
99.9%+	<9 hours	Excellent ✅	<$200k
99-99.5%	44-88 hours	Good ✅	$1-2M
95-99%	88-438 hours	Moderate ⚠️	$2-10M
<95%	>438 hours	Poor ❌	>$10M

Maintenance Protocols:

Preventive: Regular cleaning (dust removal every 3-6 months)
Predictive: Temperature monitoring, hash rate anomaly detection
Corrective: Spare parts inventory, rapid replacement procedures

Staffing:

Operations Team (50 MW facility):

Facility Manager: 1 (oversight, strategic planning)
Electrical Technicians: 3-5 (24/7 coverage, rotating shifts)
HVAC Specialists: 2-3 (cooling system management)
IT/Network: 2 (mining pool connectivity, monitoring)
Security: 2-4 (physical security, access control)
Total: 10-15 employees

Cost: $1-2M annually (salaries, benefits)

Monitoring Systems:

Real-time hash rate tracking per miner
Temperature sensors (every 10-20 miners)
Power consumption analytics
Automated alerts (email, SMS) for anomalies

6. Economic Viability

Return on Investment (ROI) Calculation:

Total Capital Investment:
- Hardware: $50M (50 MW × $1M/MW)
- Facility Build-Out: $20M (electrical, cooling, building)
- Land/Permitting: $5M
Total: $75M

Annual Revenue (at $50k BTC, 500 EH/s global hash rate):
- Hash Rate: 2.85 EH/s (50 MW facility)
- Network Share: 2.85 / 500 = 0.57%
- Daily BTC: 900 × 0.0057 = 5.13 BTC
- Annual BTC: 5.13 × 365 = 1,872 BTC
- Revenue: 1,872 × $50,000 = $93.6M

Annual Costs:
- Electricity: 50 MW × 24 hrs × 365 days × $0.04/kWh = $17.5M
- Operations: $10M (staff, maintenance, overhead)
Total: $27.5M

Annual Profit: $93.6M - $27.5M = $66.1M

ROI: $75M ÷ $66.1M = 1.13 years (13.6 months) ✅

Sensitivity Analysis:

Variable	Change	New ROI	Impact
Baseline	-	13.6 months	-
BTC Price	$30k (-40%)	34 months	High risk ⚠️
BTC Price	$75k (+50%)	8 months	Excellent ✅
Electricity	$0.06/kWh (+50%)	18 months	Moderate ⚠️
Global Hash Rate	750 EH/s (+50%)	20 months	Significant ⚠️

Break-Even Analysis:

Break-Even BTC Price = Annual Costs ÷ Annual BTC Mined
Example: $27.5M ÷ 1,872 BTC = $14,690/BTC

Interpretation: Profitable above ~$15k BTC (current: $50k = 3.4x margin ✅)

See: How to Analyze Bitcoin Mining Economics

7. Strategic Positioning

Grid Integration Value:

Demand Response Programs:

Texas ERCOT: Paid $50-150/MWh to shut off during peak demand
Example: 50 MW facility, 100 hours/year curtailment = $250k-750k additional revenue
Benefit: Grid stabilization services improve profitability

Renewable Energy Integration:

Absorb excess solar/wind (prevent curtailment)
Finance renewable infrastructure (guaranteed offtaker)
Example: Flare gas capture converts waste into revenue while reducing emissions

National Security Considerations:

Domestic hash rate contribution (cyber-sovereignty)
Energy independence (monetize domestic resources)
Economic development (jobs, tax revenue)

See: Mining Infrastructure and National Power

Assessment Checklist

Tier 1: Critical Factors (Pass/Fail)

✅ Power Capacity: >1 MW available (minimum viable) ✅ Energy Cost: <$0.08/kWh (profitability threshold) ✅ Facility Suitability: Space, cooling, electrical infrastructure adequate ✅ Legal/Regulatory: Permits, zoning, compliance secured

Tier 2: Competitive Factors (Rating 1-10)

Economic (40% weight):

Energy cost <$0.04/kWh: 10/10
ROI <18 months: 10/10
Break-even <$20k BTC: 10/10

Operational (30% weight):

Uptime >99.5%: 10/10
PUE <1.15: 10/10
Maintenance plan: 10/10

Strategic (30% weight):

Grid integration services: 10/10
Renewable energy source: 10/10
Scalability potential: 10/10

Overall Score

Example (50 MW Texas facility):
- Power Capacity: ✅ (50 MW)
- Energy Cost: ✅ ($0.03-0.05/kWh)
- ROI: 13.6 months ✅
- Uptime: 99.7% ✅
- Grid Services: Yes ✅ (ERCOT demand response)
- Renewables: 40% wind ✅

Total Score: 95/100 (Excellent Infrastructure) ✅

Red Flags

Avoid Operations With:

Electricity >$0.10/kWh (unprofitable)
Unreliable power (frequent outages, <95% uptime)
Regulatory hostility (risk of bans, punitive taxes)
No cooling plan (thermal throttling, hardware damage)
Single point of failure (no redundancy)
Obsolete hardware (>30 J/TH efficiency)

Conclusion

Assessing Bitcoin mining infrastructure requires evaluating power, energy costs, facility design, hardware efficiency, operations, economics, and strategic positioning. World-class operations achieve:

Excellence Benchmarks:

Energy: <$0.04/kWh from renewables
Efficiency: PUE <1.15, uptime >99.5%
Economics: ROI <18 months, break-even <$20k BTC
Strategy: Grid services integration, energy independence

Use this framework to:

Evaluate existing operations (identify improvement areas)
Select new facility locations (compare options systematically)
Make investment decisions (quantify ROI and risks)
Develop national mining strategies (optimize infrastructure deployment)

For nations and enterprises considering mining infrastructure, the combination of cheap energy, efficient operations, and strategic grid integration creates compounding advantages—positioning mining as energy monetization and national security infrastructure, not just cryptocurrency speculation.

For strategic context, see:

References

Infrastructure Design

Riot Platforms. (2024). Whinstone Facility Case Study. 750 MW Mining Campus.
Marathon Digital. (2024). Mining Operations Overview. Infrastructure Best Practices.

Energy Economics

Cambridge Centre for Alternative Finance. (2024). Bitcoin Mining Profitability. University of Cambridge.
Texas Blockchain Council. (2024). Bitcoin Mining in Texas. Case Studies.

Technical Specifications

Bitmain. (2024). Data Center Solutions. Mining Hardware Specifications.
MicroBT. (2024). Enterprise Mining Guide. Facility Planning Resources.

Knowledge Graph Entities

Bitcoin mining | Data center | Power usage effectiveness | Renewable energy | Energy economics