Value of Large Crypto Mine

[dirtydatallc]

We are considering going to market with our Ethereum Mine. The mine is located in Texas with full time security. It has 600 RX 580 GPUs and has a fixed $0.07/kwh power contract with no other on site fees. On Site hands are included in the power price except for maintenance operations (changing out hardware). We are trying to figure out what the value is for our operation. We have been mining with various hardware configs for 6 years now and are ready to move on to other things. We were thinking 8 times current yearly cashflow. What are y'alls thoughts as to value?

[adaseb]

I think its not a good state to mine in, the power seems expensive for a commercial operation. There are people with basic rates at their home with similar electricity rates. If you relocated to a different area with a lower power cost then its possible for you to raise some capital however...

The issue is you need to diversity and get more equipment rather than just GPUs. When ETH goes POS what will happen then? You should have BTC ASICs, LTC ASICs, etc. The 8 times yearly cashflow seems way too high in my opinion. For a basic brick and mortal business its usually no more than 3 years. With something so volatile as crypto, 8 is way too much.

[XUR_TIP]

Find a way to get rid of grid electricity, with 600 rx580 you guys must have earned alot already so instead of adding more gpu it's better to consider green energy, turbine or solar panels the choice is yours, doing this will safe you lost of money for years to come

[dirtydatallc]

Is there any data out there (ie; RIOT blockchain) that support a valuation model? Has anyone on the forums looked at private equity type valuations for BTC/ETH/Mining operations?

[TGJ]

8 times current annual cashflow? Are you out to lunch!?!? Who in their right mind would consider anything close to that with EIP-1559 in July and PoS sometime soon after.

[kcheel]

As others have said, you are way off in your calculations.  As already mentioned, a general rule of thumb when buying/selling a business is 3-5x its annual revenue.  And this is for a stable business which a crypto mine is not.  IMO, your mine is worth what your equipment is worth.