Mining Firmware Market: A New Battleground for Efficiency and Decentralization

Summary

The firmware layer between ASIC hardware and mining pool software has become a key strategic point for enhancing efficiency and forming competitive advantages. Currently, about 56% of the global SHA-256 hashing power uses non-original firmware, with Vnish leading with a 26.4% share, while original firmware has dropped to 44.4%. The economic environment after the 2024 halving, fluctuations in energy prices, and the demand for automated management of large-scale mining clusters continue to drive miners toward open and adjustable system architectures. A well-known stablecoin issuer has decided to open-source its mining operating system before the fourth quarter of 2025, further solidifying this trend, which may make the maintenance costs of closed-source firmware more widespread.

Development History

| Time | Event | Significance | |------|------|------| | 2011 | CGMiner Released | The first universal ASIC Mining program, laying the foundation for factory firmware | | October 2018 | Release of a certain open-source firmware | Implemented AsicBoost functionality, saving approximately 13% in power consumption, providing an auditable codebase | | 2018-2020 | Rise of Vnish/MSK | Commercial automatic tuning mode is widely popular in Eastern European mining farms | | 2022 | A US mining pool operator launched firmware | By 2024, its computing power grew from 3 EH/s to 13.7 EH/s | | March 2024 | A publicly listed mining company launched self-developed firmware | Deployed to 200,000 mining machines and provided to the entire industry | | June 2025 | A stablecoin giant announced an open-source plan | Promising to launch a modular peer-to-peer Mining operating system |

Market Landscape (2025 Forecast)

| Firmware Supplier | Estimated Network Share | Core Profit Model | Notable Highlights | |------------|--------------|--------------|----------| | Vnish | 26.40% | 2-3% Development Costs | Increase support for new models, unlock SD card bypass feature | | Some Open Source Firmware | 5-6% (Open Source Version) / Paid Version | Open Source Core and 2% Fee | Add New Protocols and Kernels, Support Mainstream Mining Machines | | Certain US Mining Pool Firmware | 4-5% | Subscription or Mining Pool Rebate | Significant increase in computing power through important certification | | Original Firmware | 44% | None | Dominates new hardware within warranty | | Others | Total approximately 18% | Mixed various modes | New players officially entering, some turning to SaaS services |

Note: Market share of mainstream ASIC manufacturers: a major manufacturer accounts for about 75%, followed by 18% and 7%. The firmware market still maintains a high level of competition.

Mining Demand - The Importance of Firmware

a. Efficiency and Profit Protection

• Chip-level auto-tuning can reduce energy consumption by 8-20%, which is crucial for coping with halving.
• Provides real-time flexibility to adjust operational status based on electricity prices and computing power costs.

b. Mining machine cluster automation

• Provide API for cluster management, power control, and new protocol support to reduce operational costs and review risks.

c. Security and Auditability

• Open source eliminates concerns about hidden development costs or remote control.
• Built-in security features to defend against common attacks

d. Asset Useful Life

• Intelligent tuning extends hardware lifespan and postpones update cycles.
• Data shows that 86.9% of mining machines are resold or reused, rather than scrapped.

Open Source Trends and the Impact of New Players

| Dimension | Impact Assessment | |------|----------| | Competitive Pressure | May compress existing development cost models, driving transformation of value-added services | | Decentralization | Promote peer-to-peer operations, in line with the new Mining protocol concept | | Ecological Standardization | May promote the development of universal APIs and reduce the integration costs of new technologies | | Strategic Flexibility | To cope with regulation, investors should focus on code governance |

Investment Impact

a. Firmware supplier

• Pricing pressure increases, but the overall market expands.
• Diversified sources of income have stronger risk resistance.
• Closed-source strategies may face pressure

b. ASIC manufacturers

• Over-locking may alienate customers
• Collaborating with open source or launching high-performance versions can maintain an advantage.

c. Mining operator

• Software capability is becoming increasingly important and is becoming a core strategy.
• Open-source firmware may strengthen the narrative of energy usage regulation.

d. Capital Markets

• Proprietary firmware may bring valuation premiums to listed mining companies.
• Investors should pay attention to the accounting treatment of relevant income.

Major Risks

• Security vulnerabilities: Open source brings scrutiny, but it can also lead to public vulnerabilities.
• Regulatory uncertainty: Open-source algorithms may face export control risks.
• Manufacturer resistance: Firmware lock upgrades may increase replacement costs

Conclusion

The firmware layer has evolved from enthusiast behavior into a critical profit center and a vehicle for Decentralization. As the open-source trend rises, competitive advantages will shift from closed-source optimizations to ecosystem coverage, data analysis, and energy integration services. When investors assess Mining, they should emphasize software capabilities and open-source compatibility, rather than just focusing on hardware scale. The next inflection point for efficiency improvements will be defined by code.