Bitcoin Farm Model - Excel Template

Financial model of a BTC (Bitcoin) cryptocurrency mining farm in Microsoft Excel.

by Alex Martyanov
Professional Private Practice - Financial ModelingFollow 58

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Description
This model allows to model a BTC mining farm.
It accounts for the following factors:
- BTC current price and price predictions
- BTC mining difficulty and its growth
- Mining pool fees
- Electricity prices
- ASICs prices
- Other capital expenditures
- Stuff salaries
- Rent expenses
- Provision for any ASIC (hash rate, electricity consumption, degradation rate)

The model allows to asses the mining project:
- required capital expenditures
- farm revenue in BTC and $
- operational expenditures (electricity, rent, salaries)
- net cash flow
- payback period
- internal rate of return

Info about bitcoin mining:
Bitcoin mining is the process by which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and development of the blockchain ledger. It is performed using very sophisticated computers that solve extremely complex computational math problems.

Cryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we'll use "Bitcoin" when referring to the network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a quantity of individual tokens).

This Best Practice includes
1 Excel File