Valuation of Cryptocurrency Mining Operations

  • Jose Berengueres CIT, UAE University
Keywords: Valuation, Net present Value, NPV, discounted cash flows


Traditionally, the Net Present Value method has been used to compare diverging investment strategies. However, valuating crypto-projects with fiat-based currency is confusing due to extreme coin appreciation rates as compared to fiat interest rates. Here, we provide a net present value method based on using crypto-coin as the underlying asset. Using this method, we compare buy-and-hold versus mine-and-hold; we also provide a sensitivity analysis of profitability.


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How to Cite
Berengueres, J. (2018). Valuation of Cryptocurrency Mining Operations. Ledger, 3.