The answer is simply YES under the right conditions. Just like in the crypto winters of 2014 and 2017 most mining operations were forced to shut down because most of them stepped into crypto mining in a bullish market overpaying in energy, internet, miners, and other operational costs. The primary goal is not only to be profitable but to make sure you can withstand any crypto winter while you wait for a profitable season.
But only start crypto mining under the following conditions:
- Make sure you have a stable energy price below $0,05 cents per Kwh for the next 3 years.
- Make sure your operational costs don’t exceed $0,015 cents per Kwh for the next 3 years.
- Buy miners during a crypto winter as they tend to be 30-60% cheaper. Another benefit is that in a crypto winter the hash rate drops.
- Have a clear strategy and plan to reduce costs, improve profitability and utilize tax, carbon credits, or ESG benefits where possible.
- If you are selecting a colocation location we recommend not paying more than $0,075 cents per KWH for the next 3 years.
- If possible select Immersion cooling over Air Cooling.