Solo Mining vs. Lottery Mining: The Key Differences
Werner BundschuhShare
Solo mining and lottery mining are often treated as the same thing, but technically they work differently. Before you set up your first Bitaxe, it pays to understand the difference.
In solo mining, you run your own Bitcoin node and build your own block templates. In lottery mining, you use a solo pool such as CKPool or Public Pool, which handles the node and templates for you. Either way, the daily chance with home hardware is vanishingly small, but it is not zero. Since July 2024, at least seven blocks have been found by small home miners, most of them running Bitaxe or related open-source hardware. The block rewards were worth around $200,000 to $342,000 at the time each block was found.
Key Differences at a Glance
| Feature | Solo Mining | Lottery Mining (via Solo Pool) |
|---|---|---|
| Own Bitcoin full node | Required | Not needed |
| Who builds block templates | You | The pool (except with DATUM) |
| Block reward on success | 100 % (3.125 BTC + fees) | around 98 to 100 % depending on pool fee |
| Pool fee | None | Public Pool: 0 %, Solo CKPool: 2 % |
| Setup effort | High | Plug and play |
| Trust level | Fully trustless | Small residual trust in the pool |
| Payout frequency | Extremely rare | Extremely rare |
What Is Solo Mining?
In solo mining, you mine entirely on your own. You use your own hardware and run your own full Bitcoin node.
- Your miner connects directly to the network, with no mining pool and no middleman.
- If you find a valid block, you get the entire block reward (currently 3.125 BTC) plus all transaction fees.
- You build your own block templates and choose which transactions to include. You don't have to trust anyone.
- You carry the full variance: no block, no reward. It can take years or decades before you find one.
This is how Bitcoin mining was meant to work in the early years: your own node, your own machine, your own blocks.
What Is Lottery Mining?
Lottery mining is often confused with solo mining, but technically it works differently:
- You connect your miner to a solo mining pool such as Solo CKPool or Public Pool.
- The pool takes care of the technical side: full node, block template creation and block submission.
- If a block is found, you receive almost the full reward, minus a small pool fee (Public Pool: 0 %, Solo CKPool: 2 %).
- You need neither your own node nor deep technical knowledge. Enter the Stratum address, set your own Bitcoin address as the worker, and you're done.
The name "lottery" fits quite well: with your electricity you buy yourself a ticket every ten minutes.
How High Are the Chances, Really?
In May 2026 the Bitcoin network hashrate was around 870 EH/s to 1 ZH/s (one zettahash per second), and the mining difficulty was 132.47 T.
That gives the following probabilities for common home miners:
| Hardware | Hashrate | Chance per Day | Chance per Year | Expected Wait Time |
|---|---|---|---|---|
| Bitaxe Gamma (default settings) | 1.2 TH/s | approx. 1 in 5.8 million | approx. 1 in 16,000 | approx. 15,000 years |
| Bitaxe GT (Gamma Turbo) | 2.15 TH/s | approx. 1 in 3.2 million | approx. 1 in 9,000 | approx. 8,500 years |
| NerdQaxe++ | 4.8 TH/s | approx. 1 in 1.5 million | approx. 1 in 4,000 | approx. 3,800 years |
| 6× NerdQaxe++ Cluster | approx. 29 TH/s | approx. 1 in 240,000 | approx. 1 in 650 | approx. 640 years |
These numbers are sobering. Still, every one of these probabilities is greater than zero, and every single hash is a separate, independent attempt. That is why home miners have kept finding blocks over the last two years even though the math is against them.
Real Solo Block Finds 2024 to 2026
The following blocks are recorded on the Bitcoin blockchain and can be checked on mempool.space:
- July 24, 2024, block 853,742: the first Bitaxe block. A Bitaxe Ultra with only 500 GH/s found a block via Solo CKPool and received 3.15 BTC (around $200,000 at the time). The calculated probability was about 1 in 1.1 billion per block.
- March 10, 2025, block 887,212: A small solo setup of six Bitaxe units with about 3.3 TH/s in total finds a block; the block was found by a single Bitaxe Ultra at 480 GH/s. Reward: 3.15 BTC (around $250,000).
- March 2025, block 889,975: A Bitaxe Gamma on factory settings at 1.2 TH/s finds a block. 3.149 BTC go to a single home miner.
- September 5, 2025, block 913,272: the first block found with a NerdQaxe++, though via the Ocean pool with DATUM and therefore with a proportional payout.
- October 27, 2025, block 920,440: A home setup of six NerdQaxe++ units plus an Avalon miner (around 130 TH/s combined) finds a block. Reward: around $342,000. The anonymous owner said they would use it to pay off their house.
- November 21, 2025, block 924,569: A 1.2 TH/s setup (presumably a Bitaxe Gamma) finds a block via CKPool. The fourth documented Bitaxe block.
- July 10, 2026, block 957,382: A Bitaxe with about 1 TH/s finds a block via Public Pool.
- February 28, 2026, block 938,713: An unknown miner with less than 10 TH/s finds the first solo block on Parasite Pool.
Solo CKPool records around 22 verified solo blocks by small miners over a rolling 12-month period, which works out to roughly one every 15.6 days. Statistically this is not an anomaly but the expected distribution: someone finds these blocks, and more and more of those miners work from home with open-source hardware.
Why People Do It Anyway
If the expected wait is thousands of years, why do it at all? The most common reasons:
- Sovereignty and learning. With your own node you are an active part of the Bitcoin network instead of only supplying hashrate to a pool. Along the way you learn a lot about how Bitcoin works in detail.
- Decentralization. Every home miner with their own node takes a tiny share of hashrate back from the large pools. In May 2026, seven large pools committed to supporting Stratum V2, an open standard that lets miners build their own block templates.
- Small stake, large possible reward. At around 17 W (Bitaxe Gamma), a Bitaxe costs you about €2 to €4 in electricity per month. For that, you permanently hold a ticket for 3.125 BTC.
- Hobby. Mining Bitcoin at home is a technically satisfying project. The devices are quiet, and the dashboard shows you live what your miner is doing.
- Using the waste heat. A NerdQaxe++ releases its power draw into the room as heat. Electricity that turns into heat anyway also helps secure the Bitcoin network.
DATUM as a Third Option
In September 2024, Ocean released the DATUM protocol (Decentralized Alternative Templates for Universal Mining). DATUM addresses a long-known problem: in traditional pool mining, the pool decides which transactions go into the block. That effectively gives pool operators the power to censor transactions.
DATUM changes this fundamentally:
- You build your own block templates through a local DATUM Gateway that talks to your own Bitcoin node (Bitcoin Core or Bitcoin Knots).
- You choose which transactions go into your block.
- You still receive proportional payouts from the pool, which reduces variance considerably.
- Payouts come directly from the coinbase transaction, non-custodial.
DATUM sits between true solo mining (full control, very high variance) and classic pool mining (regular sats, but the pool decides what goes into blocks). You keep control over your block templates and still get regular payouts. In return you pay a small pool fee.
If decentralization matters to you but you don't want to wait decades for a block, DATUM is worth a closer look.
Technical Setup Overview
For True Solo Mining
- Your own full node: Bitcoin Core or Bitcoin Knots. A pruned node technically works for mining, an archival node is cleaner.
- Mining software: Public Pool self-hosted on Umbrel, Start9 or a Raspberry Pi. Alternatively, Solo CKPool as your own instance.
- Hardware: Bitaxe Gamma to get started, NerdQaxe++ as the flagship.
- Wallet: Enter your own Bitcoin address directly in the miner as the payout address.
For Lottery Mining
- Pool choice: Public Pool (0 % fee, popular for Bitaxe), Solo CKPool (2 %, established), Parasite Pool (hybrid model).
- Configuration: the pool's Stratum URL and your Bitcoin address as the worker name. That's all it takes.
- Wallet: your own address. If you find a block, the payout goes straight from the coinbase transaction to you.
For DATUM
- Choose Ocean as your pool
- Run the DATUM Gateway on a Linux machine with your own Bitcoin node
- Point the miner at the local gateway instead of directly at Ocean
Common Misconceptions
"If I use CKPool, I'm a true solo miner."
No. You are taking part in a solo pool in lottery mode. The pool provides the node and the block template. True solo mining requires your own node.
"At 1 TH/s, mining is just a waste of electricity."
The math makes that understandable, but the chance is not zero: a Bitaxe Gamma on factory settings at 1.2 TH/s found a block in March 2025. At €2 to €4 in electricity per month, the stake stays small.
"Lottery mining pays off financially."
Not in expected value. The average daily payout is practically €0. If you see lottery mining as an investment, you have misunderstood the concept. It is a lottery ticket that also contributes to Bitcoin's decentralization.
"Solo mining makes me anonymous."
Only partly. Your block contains your Bitcoin address in the coinbase. If that address is later linked to a KYC exchange, the connection can be made. If you want to stay anonymous, use CoinJoin tools or a fresh address with cold storage.
"Solo CKPool and solo mining are the same thing."
See the first misconception. CKPool is a lottery mining pool with a solo payout model.
Which Hardware Fits Which Goal?
Getting started, fits in the living room:
Bitaxe 603 Gamma: 1.54 TH/s out of the box, quiet. The current entry-level model. Three Bitaxe blocks have already been found with this class of device.
Flagship:
NerdQaxe++ Made in Germany: around 4.9 TH/s at around 75 W. Four BM1370 chips with efficiency on the level of an Antminer S21, in a case that fits next to your desk. In September 2025 a NerdQaxe++ became the first device of its kind to find a block.
FAQ
Is solo mining with a Bitaxe financially worthwhile?
In expected value, no. The mathematical expectation per day is a few cents. At €2 to €4 in electricity per month, though, the stake is small and the possible reward (3.125 BTC + fees) is large. If you want regular income, pool mining with Ocean or Braiins is the better fit. If you are looking for a bet with a small stake and a very large but very unlikely payout, lottery mining is the right choice.
How much electricity does a Bitaxe Gamma cost per month?
At 17 W continuous load and a German electricity price of around 30 ct/kWh, it comes to about €3.70 per month. Austria is similar, between €3 and €5 depending on the tariff.
Do I need technical knowledge?
For lottery mining, hardly any. The Bitaxe firmware AxeOS has a web interface where you enter the Stratum address and your Bitcoin address. For true solo mining with your own node, you need solid Linux skills or the willingness to learn them.
Can my internet connection handle it?
Yes. Mining traffic is minimal, a few kilobytes per second. Even a smartphone hotspot is enough.
What happens if the power goes out?
Nothing bad. The miner restarts automatically once power is back and reconnects to the pool. You only lose the hashing time during the outage. Since every hash is independent of the previous one, you don't lose any progress.
Is solo mining legal in Germany and Austria?
Yes. In Germany, mining income counts as income from other services (private) or from a business (commercial); in Austria it is treated accordingly under the Income Tax Act (EStG). If you find a block with a six-figure payout, talk to a tax advisor beforehand, not because of legality but to get the taxation right.
Can I find a block with a Bitaxe without joining a pool?
Yes, if you self-host Public Pool or a similar solo pool on your own Bitcoin node. The "pool" then runs locally on your machine, and you are a true solo miner.
Conclusion
Solo mining and lottery mining are not an alternative to industrial mining; they serve a different purpose. You place a bet with a small stake and a large possible payout, learn a lot about Bitcoin along the way, and make a small but real contribution to its decentralization.
The numbers are clear: with a Bitaxe Gamma, the chance of finding a block within 12 months is about 1 in 16,000. Every find also shows 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.
If you are thinking about getting started, answer three questions honestly:
- Do I accept that I will probably never find a block?
- Am I drawn to the hobby, the learning, the contribution to decentralization?
- Is €3 to €5 of electricity per month worth it to me?
If you can answer yes to all three, lottery mining is a good fit for you.
You can find hardware to get started in our shop:
Bitaxe 603 Gamma, the current entry-level model
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.