Comment by paulgb
2 years 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.
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.
> recognized 66mm of depreciation on only 50mm in revenue.
https://www.usbank.com/financialiq/improve-your-operations/i...
> 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
Keep reading, that limit doesn't apply to bonus depreciation.