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Solo Mining vs. Lottery Mining: The Key Differences You Should Know

Werner Bundschuh

Have you always wondered what differentiates Solo Mining from Lottery Mining? Short answer: more than most people think – and it's worth understanding before your first Bitaxe setup.

In Solo Mining, you operate your own Bitcoin node and build your own block templates. In Lottery Mining, you use a solo pool like CKPool or Public Pool, which handles the node and templates for you. In both cases: with home hardware, the daily chance is vanishingly small – but it is not zero. Since July 2024, at least seven blocks have been found by Bitaxe-based mini-miners, each worth between $200,000 and $342,000 at the time of discovery.

Key Differences at a Glance

Feature Solo Mining Lottery Mining (via Solo Pool)
Own Bitcoin Full Node Required ✅ Not needed ❌
Own Block Templates You yourself Pool (except with DATUM)
Block Reward upon Success 100 % (3.125 BTC + Fees) ~98–100 % depending on pool fee
Pool Fee None Public Pool: 0 %, Solo CKPool: 2 %
Setup Effort High Plug-and-Play
Trust Level Completely trustless Low residual trust in the pool
Payment Frequency Extremely rare Extremely rare

What is Solo Mining?

In Solo Mining, you mine completely independently. You use your own hardware and operate your own full Bitcoin node.

  • Direct network connection – no mining pool, no middleman.
  • Full block reward – if you find a valid block, you get the entire reward (currently 3.125 BTC) plus all transaction fees.
  • Trustless – you create your own block templates and choose which transactions to include.
  • Full variance risk – no block, no reward. It can take years or decades.

This is Bitcoin mining as Satoshi envisioned it in 2009: one person, one node, one machine, one block.

What is Lottery Mining?

Lottery Mining is often confused with Solo Mining, but it is technically different:

  • You connect your miner to a Solo Mining Pool like Solo CKPool or Public Pool.
  • The pool handles the technical tasks: full node, block template creation, block submission.
  • Reward: If a block is found, you receive almost the full reward – minus a small pool fee (Public Pool: 0 %, Solo CKPool: 2 %).
  • Simplified entry: You don't need your own node or deep technical knowledge. Just enter the Stratum address, your own Bitcoin address as the worker, and you're done.

It's called "Lottery" because that's exactly what it is: you buy a ticket with your electricity consumption every ten minutes.

How High Are the Chances, Really?

Let's be clear. The current Bitcoin network hashrate in May 2026 is around 870 EH/s to 1 ZH/s (one zettahash per second), and the mining difficulty is 132.47 T.

This results in the following realistic probabilities for common home miners:

Hardware Hashrate Chance per Day Chance per Year Expected Wait Time
Bitaxe Gamma 601 1.2 TH/s approx. 1 in 5.8 million approx. 1 in 16,000 ~15,000 years
Bitaxe GT (Gamma Turbo) 2.15 TH/s approx. 1 in 3.2 million approx. 1 in 9,000 ~8,500 years
NerdQaxe++ 4.8 TH/s approx. 1 in 1.5 million approx. 1 in 4,000 ~3,800 years
6× NerdQaxe++ Cluster ~29 TH/s approx. 1 in 240,000 approx. 1 in 650 ~640 years

The numbers seem brutal – and they are. But: Each of these probabilities is greater than zero, and each individual hash is its own, independent chance. That's exactly why home miners have repeatedly achieved the seemingly impossible in the last two years.

Real Solo Block Finds 2024–2026

These are not anecdotes, but documented blocks on the Bitcoin blockchain – each verifiable on mempool.space:

  • July 24, 2024 – Block #853,742: The first Bitaxe block ever. A Bitaxe Ultra with only 500 GH/s found a block via Solo CKPool and collected 3.15 BTC (then ~200,000 USD). The calculated probability was about 1 in 1.1 billion per block.
  • March 10, 2025 – Block #887,212: A small solo setup with a total of 3.3 TH/s (multiple Bitaxes) finds a block. Reward: 3.15 BTC (~250,000 USD).
  • March 2025 – Block #889,975: A stock Bitaxe Gamma with 1.2 TH/s finds a block. 3.149 BTC to a single home miner.
  • September 5, 2025 – Block #913,272: First block found with a NerdQaxe++ – however, via Ocean's Pool with DATUM, therefore proportional payout.
  • October 27, 2025 – Block #920,440: A home setup of six NerdQaxe++ plus an Avalon miner (total ~130 TH/s) finds a block. Reward: ~342,000 USD. The owner (anonymous) stated that they would use it to pay off their house.
  • November 21, 2025 – Block #924,569: A 1.2 TH/s setup (presumably Bitaxe Gamma) finds a block via CKPool. Fourth documented Bitaxe block.
  • February 28, 2026 – Block #938,713: An unknown miner with under 10 TH/s finds the first solo block on Parasite Pool.

Solo CKPool documents around 22 verified solo blocks in the rolling 12-month period by small miners, so on average every ~15.6 days. Statistically, this is not an anomaly, but the natural distribution – someone has to find these blocks, and more and more "someones" are mining at home with open-source hardware.

Why People Still Do It

If the expected wait time is millennia, why do people do it at all? The honest answer:

  1. Sovereignty and education. Solo Mining is the only form in which you are truly part of the Bitcoin network – not just a hashrate provider for a pool. You learn more about Bitcoin than any book can teach you.
  2. Decentralization. Every home miner with their own node shifts a micro-share of the hashrate back from pool concentrations. In May 2026, seven large pools committed to Stratum V2 support – a direct effect of years of pressure from the solo mining community.
  3. Asymmetric Upside. With ~17 W power consumption (Bitaxe Gamma), a Bitaxe costs you about €2–4 in electricity per month. For that, you hold a permanent "lottery ticket" for 3.125 BTC.
  4. Hobby and Fascination. Bitcoin mining at home is a technically satisfying project. The noise level is minimal, the setup is fun, the dashboard is mesmerizing.
  5. Heat as a Service. A NerdQaxe++ heats a small room in winter – electricity that is converted into heat anyway also secures the Bitcoin network.

DATUM – The Third Option

In September 2024, Ocean released the DATUM Protocol (Decentralized Alternative Templates for Universal Mining). DATUM solves a long-standing problem: In traditional pool mining, the pool determines which transactions are included in the block. This effectively gives pool operators censorship power over Bitcoin.

With DATUM, this changes fundamentally:

  • You create your own block templates via a local DATUM Gateway that communicates with your own Bitcoin node (Bitcoin Core or Bitcoin Knots).
  • You choose which transactions are included in your block.
  • However, you still receive proportional payouts from the pool – this dramatically reduces variance.
  • Direct Coinbase payout, non-custodial.

This is the bridge between "true" Solo Mining (full control, brutal variance) and Pool Mining (regular sats, but the pool decides everything). DATUM gives you the control of Solo Mining with the payout stability of Pool Mining – with the trade-off of a small pool fee.

Anyone who values decentralization but doesn't want to wait decades for a block find should seriously consider DATUM.

Technical Setup Overview

For True Solo Mining

  • Own Full Node: Bitcoin Core or Bitcoin Knots. Pruned works technically for mining, archival is cleaner.
  • Mining Software: Public Pool self-hosted on Umbrel, Start9, or Raspberry Pi. Alternatively, Solo CK Pool as a separate instance.
  • Hardware: Bitaxe Gamma as an entry-level lottery miner, NerdQaxe++ as the flagship.
  • Wallet: Configure your own Bitcoin address as the payout address directly in the miner.

For Lottery Mining

  • Pool Selection: Public Pool (0 % fee, popular for Bitaxe), Solo CKPool (2 %, established), Parasite Pool (hybrid model).
  • Configuration: Stratum URL of the pool + your Bitcoin address as the worker name. That's all you need.
  • Wallet: Directly your own address – in case of success, the payout goes directly from the Coinbase transaction to you.

For DATUM

  • Choose Ocean Pool as the pool
  • Run DATUM Gateway on a Linux computer with its own Bitcoin node
  • Point the miner to the local gateway instead of directly to Ocean

Common Misunderstandings

"If I use CKPool, I'm a real solo miner."
False. You are a participant in a solo pool in Lottery mode. The node and block template are provided by the pool. True Solo Mining requires your own node.

"With 1 TH/s, mining is just a waste of electricity."
Mathematically understandable, but factually disproven. A stock Bitaxe Gamma with 1.2 TH/s found a block in March 2025. At €2–4 electricity costs per month, the risk-reward ratio is better than any state lottery.

"Lottery Mining is financially worthwhile."
Not expectedly. The average daily payout is literally €0 for the next few years. Anyone who views Lottery Mining as an investment has misunderstood the concept. It is a lottery ticket with the bonus of decentralizing Bitcoin.

"With Solo Mining, I am anonymous."
Only partially. Your block contains your Bitcoin address in the Coinbase. If this address is later linked to a KYC exchange, the connection can be established. Anyone who truly wants to remain anonymous should use CoinJoin tools or a fresh address with cold storage.

"Solo CKPool and Solo Mining are the same thing."
See the first misunderstanding. CKPool is a Lottery Mining pool with a solo payout model.

Which Hardware Suits Which Goal?

Entry-level / Living room friendly:
Bitaxe Gamma 601 – 1.2 TH/s, ~17 W, silent, approx. €200–300. The classic. Three Bitaxe blocks have already been found with this hardware class.

A bit more power, equally compact:
BitForge Nano – 2.4 TH/s with two BM1370 chips, approx. 36 W. Double the chance in the same form factor.

Flagship:
NerdQaxe++ Made in Germany – 4.9 TH/s at only approx. 72 W. Four BM1370 chips, S21-level efficiency, but in a casing that can be placed next to your desk. A NerdQaxe++ was the first device of its kind to find a block in September 2025.

FAQ

Is Solo Mining with a Bitaxe financially worthwhile?

Not expectedly, but hypothetically yes. The mathematical expectation per day is in the cents range. But: with €2–4 electricity costs per month, the outlay is minimal, the potential upside (3.125 BTC + Fees) is enormous. If "worthwhile" is defined as regular income, you should do pool mining at Ocean or Braiins. If you are looking for an asymmetric bet profile, Lottery Mining is the right choice.

How much does a Bitaxe Gamma cost per month in electricity?

At 17 W continuous load and a German electricity price of ~30 ct/kWh: around €3.70 per month. Similar in Austria, between €3 and €5 depending on the tariff.

Do I need technical prior knowledge?

For Lottery Mining: hardly any. The Bitaxe firmware (AxeOS) has a web interface, you enter the Stratum address and your Bitcoin address, and you're done. For true Solo Mining with your own node: solid Linux knowledge or the willingness to learn it.

Can my internet connection handle this?

Easily. Mining traffic is minimal – a few kilobytes per second. Any smartphone hotspot is sufficient.

What happens if the power goes out?

Nothing bad. The miner restarts automatically when power is restored and reconnects to the pool. Only the current hashes are lost – but every hash is independent of the previous one anyway.

Is Solo Mining legal in Germany and Austria?

Yes, completely legal. Income from mining is considered income from other services (private) or business (commercial) in Germany, and accordingly under the Income Tax Act in Austria. In the event of a block find with a 6-figure payout, a tax advisor should be consulted beforehand – not because of legality, but because of correct taxation.

Can I find a block with a Bitaxe without joining a pool?

Yes, by self-hosting Public Pool or a similar solo pool on your own Bitcoin node. Then the "pool" runs locally on your machine – and you are a true solo miner. Block 938,713 (February 2026) was found exactly this way.

Conclusion

Solo Mining and Lottery Mining are not alternatives to industrial mining – they are something different. A statement. A bet with an asymmetric payout profile. A learning tool. A small but real contribution to the decentralization of Bitcoin.

The numbers are clear: with a Bitaxe Gamma, a block find over 12 months is a 1-in-16,000 chance. But every time someone finds a block, the Bitcoin blockchain proves again and again that the protocol makes no distinction between a 130 TH/s cluster and a 500 GH/s Bitaxe. A valid hash is a valid hash.

Anyone considering getting started should honestly ask themselves three questions:

  1. Do I accept that I will probably never find a block?
  2. Am I attracted by the hobby, the learning, the contribution to decentralization?
  3. Are the €3–5 electricity costs per month worth the risk?

If the answer is three times yes: welcome to the club.

Hardware for your entry can be found directly from us:
👉 Bitaxe Gamma 601 – the entry-level classic
👉 NerdQaxe++ Made in Germany – our flagship

Questions? Write to us – we help with setup, pool comparison, and DATUM configuration.

Sources: Blocktrainer, D-Central Bitaxe Block Wins Tracker, DTV Electronics Solo Blocks Timeline, Ocean DATUM Press Release, CoinWarz Difficulty Chart. As of: May 2026.

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