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This guide explores immersion-cooled Bitcoin mining, explains why effective cooling is critical, compares immersion cooling with traditional air-cooled systems, and outlines the main immersion deployment methods used today.
Learning Objectives
After reading this report, you will be able to:
- Understand what immersion-cooled Bitcoin mining is and how it differs from air-cooled mining
- Recognize why heat management is critical and how overheating negatively impacts miner performance and profitability
- Identify the benefits of immersion mining and the various ways it can be implemented
Disclaimer
This report is provided for general informational purposes only. The views expressed herein may differ from those of Marathon Digital Holdings (“MDH”), its officers, employees, directors, advisors, or affiliates. Nothing in this report constitutes investment, legal, accounting, or other professional advice from MDH or its affiliates.
Information has been obtained from sources believed to be reliable; however, MDH does not guarantee the accuracy or completeness of this information. Past performance and forward-looking statements are not guarantees of future results. Content may be updated, modified, or withdrawn without notice and may not reflect the most recent developments.
What Is Immersion-Cooled Bitcoin Mining?
Immersion-cooled Bitcoin mining—commonly referred to as “immersion”—is a cooling method in which mining hardware is submerged in a dielectric (nonconductive) liquid, typically a specialized oil or synthetic fluid. The primary purpose of immersion is to dissipate the substantial heat produced by ASIC miners more efficiently than air-based cooling.
Unlike traditional air-cooled systems, which rely on fans to move air across heatsinks, immersion cooling uses liquid’s superior thermal conductivity to draw heat directly away from the hardware. This results in improved thermal stability, reduced noise, and enhanced operational performance.
Why Cooling Matters in Bitcoin Mining
Bitcoin mining is an energy-intensive process that converts electricity into computational work (hashes) to secure the network and validate transactions. Heat is an unavoidable byproduct of this process and must be removed quickly and consistently.
Effective heat management is one of the most important factors in maintaining a reliable and efficient mining operation. Poor cooling leads to higher power consumption, reduced performance, increased hardware stress, and ultimately lower profitability.
Today, miners primarily rely on two cooling approaches:
- Air cooling
- Immersion cooling
Negative Effects of Operating an Overheated Miner
Operating mining hardware at elevated temperatures can result in:
- Reduced hash rate: Thermal throttling lowers performance and reduces bitcoin production
- Increased power consumption: Hotter ASICs require more electricity per terahash
- Lower efficiency: More energy is consumed while fewer hashes are produced
- Accelerated wear and tear: Excess heat shortens the lifespan of components such as PDUs, switchgear, and transformers
- Permanent hardware damage: Severe overheating can render miners unusable
- Higher noise levels: Fans may reach up to 90 decibels at maximum speed
- Reduced profit margins: Increased costs combined with reduced output directly impact profitability
Independent testing has shown a direct correlation between ASIC operating temperature and power draw: as temperature rises, electricity consumption increases even when hash rate remains constant.
What Is Air-Cooled Bitcoin Mining?
Air-cooled mining is the most widely used cooling method today. It relies on internal fans and external ventilation systems to regulate miner temperature.
ASIC miners typically use a push-pull airflow design, drawing cooler air across heatsinks attached to the hash boards. Temperature sensors dynamically adjust fan speeds based on thermal conditions.
Large-scale mining operations often supplement internal fans with industrial ventilation, filtration, and humidity control systems to manage airflow, dust, and environmental consistency.
How Immersion Cooling Works and Its Benefits
Immersion cooling submerges ASIC miners in dielectric fluid, allowing heat to transfer directly into the liquid. Because liquids conduct heat far more efficiently than air, immersion cooling provides significant advantages over traditional air-cooled setups.
Key Benefits of Immersion Mining
- Higher hash rates: Improved cooling allows safe overclocking and increased output
- Lower power consumption: Fans can be removed, reducing energy usage
- Improved efficiency: Superior heat transfer lowers energy cost per hash
- Reduced maintenance: Sealed systems protect hardware from dust and debris
- Extended hardware lifespan: Lower operating temperatures reduce component stress
- Deployment flexibility: Effective in hot, dusty, or humid environments
- Higher heat density: More miners can be placed in less physical space
- Lower noise levels: Liquid cooling operates almost silently
- Waste heat reuse: Thermal output can be repurposed for heating or industrial processes
- Long-term cost savings: Reduced maintenance and improved efficiency offset higher upfront costs
While immersion offers clear advantages, it is a newer technology with multiple implementation approaches, each with its own trade-offs.
Immersion Cooling Architectures
Single-Phase, Single-Loop Immersion
This first-generation immersion system uses a single loop of dielectric fluid circulated through a tank and radiator. Miners are submerged after fan removal, and heat is transferred from the fluid to a radiator cooled by air or water.
Advantages:
- Simple design
- Lower upfront complexity
Limitations:
- Fluid loss risk in the event of leaks
Single-Phase, Double-Loop Immersion
The most common large-scale immersion method today, double-loop systems use two separate coolant loops.
- Primary loop: Dielectric fluid absorbs heat from miners
- Secondary loop: Water or glycol removes heat via a heat exchanger and cooling tower
Advantages:
- Improved cooling efficiency
- Reduced dielectric fluid usage
- Lower risk in external leaks (water instead of oil)
Trade-offs:
- Higher system complexity
- Potentially higher installation costs
Two-Phase Immersion
Two-phase immersion represents the most advanced and experimental approach. Miners are stripped of fans, heatsinks, and enclosures, and placed in sealed tanks containing a fluid that alternates between liquid and vapor states.
As heat causes the liquid to vaporize, the vapor rises, condenses on cooled surfaces, and returns as liquid—continuously cycling heat away with minimal energy input.
Advantages:
- Exceptional heat transfer efficiency
- Higher rack density
- Potential 5–10% power savings over single-phase immersion
- Reduced miner hardware requirements
Limitations:
- Higher cost
- Greater maintenance requirements
- Still considered experimental at scale
Closing Remarks
Immersion cooling submerges mining hardware in dielectric fluid to achieve superior heat management compared to air cooling.
Proper thermal control is essential in Bitcoin mining, as overheating leads to higher power usage, lower efficiency, increased hardware degradation, and reduced profitability.
Immersion cooling offers benefits including higher hash rates, quieter operation, increased miner density, reduced maintenance, and improved operational resilience.
The technology continues to evolve, with single-phase immersion currently dominating large-scale deployments and two-phase immersion showing promise as a future high-efficiency solution.
Glossary of Key Terms
- Air-Cooled Mining: Cooling method using fans and airflow
- ASIC: Specialized chip designed for SHA-256 computation
- Bitcoin (BTC): Decentralized digital currency introduced in 2009
- Blockchain: Distributed ledger of transactions
- Block Reward: Bitcoin earned for mining a block
- Dielectric Fluid: Nonconductive liquid used in immersion cooling
- Hash / Hash Rate: Measure of computational power
- Heatsink: Component that disperses heat from ASICs
- Immersion Mining: Liquid-based cooling method for miners
- Miner: Hardware or operator securing the Bitcoin network
- Proof-of-Work: Consensus mechanism used by Bitcoin
- SHA-256: Cryptographic hash function used in Bitcoin
- Transaction Fee: Fee paid to miners to process transactions