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This works in theory, but the problem is, these miners are not actually a flexible user in practice. Every minute they’re not mining, they’re losing money in th

by paulgb 3y ago

This works in theory, but the problem is, these miners are not actually a flexible user in practice. Every minute they’re not mining, they’re losing money in the sunk cost of (depreciating) hardware. For example, in Q2 2023, Riot (the biggest miner in Texas) recognized 66mm of depreciation on only 50mm in revenue.

nullc 3y ago
> recognized 66mm of depreciation on only 50mm in revenue. https://www.usbank.com/financialiq/improve-your-operations/industry-insights/Maximizing-your-deductions-Section-179-and-Bonus-Depreciation.html https://www.usbank.com/financialiq/improve-your-operations/i...
- paulgb 3y ago
  > Section 179 benefits apply to small and mid-size businesses that spend less than $4.05 million per year for equipment They are way over that
  - nullc 3y ago
    Keep reading, that limit doesn't apply to bonus depreciation.
wmf 3y ago
Every minute they’re not mining, they’re losing money in the sunk cost of (depreciating) hardware. Which is fine because they only shut off a few hours per day and the amount they get paid to shut off is more than they would have made from mining. Riot recognized 66mm of depreciation on only 50mm in revenue. That's because Riot is a scam to transfer money from investors to their executives.