A single tornado can wipe out a business if all its assets are clustered in one zip code. This is the central premise of a strategy that looks more like industrial insurance than high-frequency trading. At the heart of this approach is the belief that in the volatile market of cryptocurrency mining, location is not just a logistical detail but a survival mechanism. The speaker behind this philosophy is Krunal Joshi, managing partner at Precision Miners, who stood before the audience at Mining Disrupt Miami 2024 on June 24–26, 2024, to outline how a company can treat its infrastructure portfolio with the same caution a petroleum executive would apply to a drilling operation.
Joshi’s background is not in digital assets but in the oil and gas industry, a sector defined by physical risk and capital-intensive project delivery. He brought that mindset to Precision Miners, a hosting site provider that builds sites and currently manages around 20 megawatts of hosting capacity. The company’s strategy is explicitly anti-concentrated. Rather than building one massive, monolithic data center, they prefer a distributed network. This decision stems from a simple lesson learned in a different industry: do not rely on a single point of failure. When Bitcoin traded at $61,272 on June 24, 2024, Joshi's talk was about where to put the machines. Bitcoin traded at $83,316 on October 12, 2026; the case for protecting hardware from both physical and economic shocks does not depend on the price.
From Oil and Gas to Bitcoin: The 'Eggs in One Basket' Doctrine
The transition from hydrocarbons to hash rates is not seamless, but the core principle of diversification translates directly. Joshi framed the mining landscape as a high-stakes environment where a single adverse event can be catastrophic. In his view, the traditional tech model of scaling up in a single location is a liability in the mining world. He described the company’s philosophy as a direct import from his previous career, where the cost of a single bad decision could sink a venture. The goal is to ensure that no single site, no single power provider, and no single regulatory body holds a monopoly over the company’s ability to operate.
we try not to put all our eggs in one basket
Krunal Joshi · 0:52
This doctrine drives every decision from site acquisition to expansion. Precision Miners does not view its 12 locations in Missouri and Kansas as separate entities, but as a single, resilient network. By spreading the hardware, the company ensures that a problem at one location—whether a weather event, a power outage, or a legal dispute—does not cascade into a total operational halt. It is a defensive posture that prioritizes longevity over short-term density.
The Three Filters: Energy Costs, Regulation, and Infrastructure
Before Precision Miners picks a site, it runs it through three considerations. The first is energy cost, which Joshi called probably the most important: everyone wants the lowest power rate, and that is the primary goal. The second is regulatory analysis. With state governments and governments around the world clamping down on mining, the company tries to stay in areas that are low in regulation.
we always try to stay in areas that are low in regulation
Krunal Joshi · 1:41
The third filter is infrastructure, specifically the presence of existing substations and ease of material procurement. Joshi pointed to a 20-megawatt greenfield site in Missouri that the company recently acquired. Its value was not just its capacity, but its location right next to a substation and off a freeway. This proximity reduces the time and cost required to bring the site online. By combining these three factors—cost, regulation, and infrastructure—Precision Miners creates a shortlist of sites that are not just feasible, but robust against external shocks.
Tornado Alley as a Business Case: Why Geography Matters
The choice of Missouri and Kansas is not accidental. These states sit squarely in what meteorologists call Tornado Alley. For a company that houses expensive, sensitive hardware, this presents a unique risk profile. If a mining company were to cluster all its operations in a single location in this region, a single severe weather event could destroy its entire capacity. Joshi described this scenario bluntly, noting that a tornado hitting a concentrated site would effectively end the business. By distributing its 12 locations across the two states, Precision Miners ensures that even a catastrophic event at one site leaves the rest of the network fully operational.
we are in Tornado Alley so if you had all your sites in one location and a tornado came by I mean that would pretty much mean the end
Krunal Joshi · 2:40
This geographic spread also allows the company to access different types of energy sources. Joshi mentioned that diversification helps them access stranded assets like natural gas.
The 20% Price Hike: How Diversification Buys Leverage
Beyond weather, the primary economic threat to a mining operation is the power provider. If a company relies on a single utility, that utility holds significant leverage over its pricing. Joshi explained that when a provider starts dictating terms, a diversified operator has a critical advantage: the ability to leave.
you can't let the electricity provider dictate terms to you
Krunal Joshi · 3:27
This is not a theoretical concern. Joshi cited a specific incident where a site increased its prices by 20%. Rather than absorbing the cost or negotiating, Precision Miners packed up its hardware and moved to a new site within a week. This rapid relocation was only possible because the company had already built and serviced an alternative location. The ability to walk away from unfavorable terms protects margins and ensures that the company is not held hostage by a single counterparty.
a site increased their prices by 20% and we just packed our bags and in a week we were at our new side
Krunal Joshi · 3:37
Scaling Speed: Building 5 Megawatts in 30 Days
Speed matters as much as spread. The site in Joshi's opening slide, a 5-megawatt hosting site, was built in 30 days for one of the company's clients. When a client needs capacity, or the company needs to leave a bad deal, a new site can come online fast.
The company typically starts with a 5-megawatt deployment. If the site performs well and the relationship with the landowner is positive, they expand. Joshi mentioned that in many cases, they have expanded from 5 to 20 megawatts within a year. This staged approach allows them to test the waters before committing significant capital.
The Cost of Spreading Thin: Logistics and Risk Management
Diversification is not without its costs. Managing 12 sites across two states requires a robust logistical framework. Joshi acknowledged that there are disadvantages to this model, primarily the complexity of operations. To mitigate this, the company has implemented strict risk management plans for each site. They monitor all locations from a central location. They have also strategically placed warehouses to ensure that spare parts and supplies are available where they are needed most.
when you diversify you need to have your logistic planning in place
Krunal Joshi · 4:09
Each site also has one or two technicians dedicated to it. Joshi did not hide that the model has disadvantages; his point was that they have to be planned for, not that they can be avoided.
Krunal Joshi’s presentation at Mining Disrupt Miami 2024 offered a clear case study in how a company can use diversification as a shield. By spreading its assets across Missouri and Kansas, Precision Miners has built a business that is not just efficient, but durable. This conversation about resilience and operational strategy continues at Mining Disrupt 2027, March 22 to 24 in Irving, Texas, where the industry’s next generation of leaders will gather to debate the future of mining infrastructure. When this session was recorded, Bitcoin traded at $61,272; on October 12, 2026 it was $83,316.