The latest mining profitability calculator gives a modern overview of the mining business that will operate in various scenarios. Their process looks  complicated for new buyers, but it becomes more manageable after understanding an entire process.

Method Of Mining Calculation:

Capital Expenditure (CAPEX)

In a mining profit calculator, Capital expenditure is a cost that pays for upgrading business assets.

 In Bitcoin mining, CAPEX includes many points like 

  • ASICs, PSUs, purchasing
  • Purchasing a data center facility for hardware
  • HVAC setup
  • Labour for installation
  • Legally compliant of taxes and license

Monthly Operational Expenditure (OPEX)

While calculating monthly mining revenue, Monthly operational expenditure includes employees’ salaries, monthly expenses as security or insurance. It is based on power consumption and electricity prices.

Original Hardware and Infrastructure Value 

Estimation of hardware value input includes the resale value of mining hardware like ASICs and PSUs and market value of infrastructure like containers, fluid generators, immersion cooling tanks.

Appreciation or Depreciation of Hardware & Infrastructure 

Appreciation or depreciation are two inputs that allow monthly changes of the value of physical assets.

ASIC hardware’s value depends on Bitcoin’s price, but when the latest and better models come into a market or network difficulty increases, ASICs become less valuable.

If Bitcoin mining calculates cash flow for 6 – 12 months, BTC price should be a unique variable fixing hardware’s change in value. Increasing difficulty and current ASICs running the market should be the principal contributor to depreciation over more extended. 

HODL Ratio

It’s prevalent for miners to hold some portion of their BTC profits on their balance sheet to show potential price appreciation. 

Miners created the HODL Ratio for buyers to define a percentage of their net profit each month to keep in BTC.

HODL ratio will affect BTC’s value on a balance sheet and will appreciate or depreciate in fiat terms. 

Discount Rate

If there is a nonzero Discount rate, it will not change stats or chart’s data series.

In Discounted Cash Flow Analysis, the Discount rate is an interest rate used to determine future cash flows’ present value.

The method of profitability calculator is different on other sites. The inputs are:

  • Current BTC price & difficulty 
  • Total hashrate 
  • Pool & other fees 
  • Electricity price 
  • Period 
  • Total power consumption 
  • Avg. transaction fees per block 
  • Price increment 
  • Difficulty increment 

Bitcoin’s network difficulty has consistently increased, but lags in price increases. Manufacturing and expanding new ASIC hardware is a challenging growth in mining calculation. You can get more mining information at Bitpatt.