. In fact, the U.S. is now the world’s largest mining center, something that would have been inconceivable in January.
“We realized that when you look at mining public mining companies, there's really a few metrics that they all report. It's the current hash rate, future expected capacity and then their cost to mine a coin. So we dug in a little bit and saw that everyone differs on how they calculate their cost per coin; it's not very transparent.”
As a result, Amanda and her team decided to build their own model for calculating the cost of a coin, relying on data reported by companies in regulatory filings. They use three levels of analysis to break down the costs between direct and indirect expenditures, while also accounting for depreciation.that includes power and hosting costs, excluding any capital expenditures to build a facility or purchase new machines.by adding in a set depreciation schedule.
So, what can this model tell us? And what is missing? After all, like any worthwhile model it makes certain key assumptions and excludes certain variables to focus on the most pressing data points. For instance, Galaxy’s model does not incorporate items such as future mining capacity, revenue generated from price appreciation or making balance sheet loans, the relative efficiencies of renewal vs. fossil fuel energy sources. Those can be added in by other analysts using the models.