Ways to pay for bitcoin mining operation

Artem Sereda

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Quote from: altair_tech on February 26, 2023, 10:40:48 PM

If you have the power and rackspace, you could start out by hosting for others and use the profits to buy your own miners.

@altair_tech Most hosting companies don't like to allocate space for mining servers. Because for the ISP it is an irrational use of resources

Zionodes

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While your investment strategy appears to be sound, the risk of borrowing capital to fund these operations is extremely high, particularly in the crypto industry, which is why it is always best to conduct extensive due diligence before committing to any strategy.

Follow this link to our article to learn about various methods of financing BTC Mining operations in 2023: https://zionodes.com/blog/financing-btc-mining-operations-in-2023-options-to-consider. Keep in mind, however, that this article is only for educational purposes and should not be construed as financial advice. Please consult your financial advisor before making any financial decisions.

gunhell16

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Quote from: bitrsanch on February 22, 2023, 08:07:20 AM

Next month, I intend to place a bulk order for miners. I have the means to do so, but I'm still looking for ways to fund it so that I can put my savings toward other investments (just in case this one fails). Please share any ideas you have on how I could accomplish this. I'm looking for tried-and-tested methods of financing these operations.

Mining operation? are you planning to build a cloud mining OP? I don't seem to see any legitimate Cloudmining these days. Also, you will need quite a bit of capital here, but you can afford it.

But you know that the risk of doing this is quite high. This is just my opinion and suggestion, maybe you should have a feasibility on this matter first if you are serious about your plans. So that every step you take is at least smooth and your electricity as well must be cheaper too.

Fara Chan

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Quote from: bitrsanch on February 22, 2023, 08:07:20 AM

I'm looking for tried-and-tested methods of financing these operations.

Mining operations are one of the jobs that have a high risk, the mining method so far we know there are several ways, some use ASIC and the other by using rig mining (and this requires effective space), besides paying attention to the cost of electric power In your place because this also affects your profits and also depends on the hash that will be obtained later, capital depends on the method you are using, maybe in terms of financing you must examine precisely.

Maybe the statement that you say is a good strategy, but regarding costs or funding, we do not agree to use capital loans to run this operation, because this is a high-risk work, it is better if it is not rush to operate mining or mining industry, you Moreover, investing in Bitcoin first, use profits in investment to organize these operating equipment.

bettercrypto

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Quote from: bitrsanch on February 22, 2023, 08:07:20 AM

Next month, I intend to place a bulk order for miners. I have the means to do so, but I'm still looking for ways to fund it so that I can put my savings toward other investments (just in case this one fails). Please share any ideas you have on how I could accomplish this. I'm looking for tried-and-tested methods of financing these operations.

What do you say is a method will really help you with these plans? Then what kind of miners would you buy in the plural some pieces of these miners?

Because you know if your electricity consumption is cheap, let's just say it's 0.06-0.08 $ kwh if you can say that it's okay you are planning that, but if your KWH per hour is higher then I think the ones will just ignore those You are thinking of a plan, even if we say that you really have to buy miners but if you lose electricity you will earn it it is best not to continue because you are wasting time, tired, money for sure.

altair_tech

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If you have the power and rackspace, you could start out by hosting for others and use the profits to buy your own miners.

Husires

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With the current interest rates and the proximity of Bitcoin to the average cost of mining, which is about 17k, and the lack of expectations of new ATH or any price higher than 28k, what is the potential return from all this risk?

It's not just about buying miners and making a profit but how long do you need to recover the capital, factoring in the depreciation factor and your ability to get rid of the mining rigs.
Another thing that can cause you to lose is energy price fluctuations.
there wasn't much left for the next Bitcoin halving.

For methods, you can use your bitcoins as collateral and buy hardware with them, or go to the bank and borrow money from them (I doubt they'll give you that).

You can set up a small company and try to sell the shares of that company to other Bitcoiners/

FP91G

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Quote from: bitrsanch on February 22, 2023, 08:07:20 AM

Next month, I intend to place a bulk order for miners. I have the means to do so, but I'm still looking for ways to fund it so that I can put my savings toward other investments (just in case this one fails). Please share any ideas you have on how I could accomplish this. I'm looking for tried-and-tested methods of financing these operations.

You haven't thought about buying bitcoin. I don’t know your mining cost, for example, my friends in Russia have 17-20 thousand dollars for 1 bitcoin. They use asics 70-100 terahesh. If the price of bitcoin falls to 15,000 dollars, then I think that your mining will be unprofitable, and if you buy bitcoin, then lose 40% of your investment. But bitcoin is easy to sell and invest in a profitable project, and non-profit ASICs are very difficult to sell quickly and at a good price.

NotFuzzyWarm

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Quote

I'm looking for tried-and-tested methods of financing these operations.

The same way you would finance any high-risk venture:
Figure out all operation costs involved - this will mainly be your electric power used. Use https://whattomine.com/asic and input your hash rate and cost of power, it will output the current profit or loss.
ONLY if you can mine at a profit should you continue investigating...
No matter what, there are NO guarantees in this business.
If you are a registered business in the USA one huge perk is that you can take the cost of equipment as a tax deduction.
From the section179 site:

Quote

News Alert: The 2023 Section 179 Deduction Limit for Businesses is $1,160,000
Jan 2, 2023 – The Section 179 deduction for 2023 is $1,160,000 (this is up from $1,080,000 in 2022). This is a full $80,000 increase from last year. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,160,000. In addition, the “total equipment purchase” limit has been raised to $2,890,000 (up from $2.7 million in 2022). The deduction can include both new and used qualified equipment

bitrsanch

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Next month, I intend to place a bulk order for miners. I have the means to do so, but I'm still looking for ways to fund it so that I can put my savings toward other investments (just in case this one fails). Please share any ideas you have on how I could accomplish this. I'm looking for tried-and-tested methods of financing these operations.

Topic: Ways to pay for bitcoin mining operation (Read 202 times)