How Blockchain Companies Still Create Serious Cashflow Mining Crypto, Even In A Lull

Businesses are increasingly turning to cryptocurrency mining to mitigate the cost of unprofitable lulls and unexpected costs.

Cryptocurrency mining rigs use high-powered graphics cards to solve complex equations that power the blockchain networks upon which cryptocurrencies are built. The reward for solving these equations is a small amount of the cryptocurrency in question – often Bitcoin or Ethereum, although there are hundreds of others in existence.

 

Purpose-built mining rigs like the Coinmine One allow individuals and organizations to offset ongoing costs by producing revenues through cryptocurrency mining. The investment helps businesses spread costs over longer periods of time, gradually making back revenue in the process.

Just make sure you actually have the right to deploy mining rigs at your place of business. Don’t get fired like this guy did. Or these guys. Pro tip: it’s hard to keep a secret that draws 300 kilowatt-hours of electricity per transaction.

Why Crypto Mining Works for Business

One of the most compelling reasons companies invest in cryptocurrency mining rigs is because it’s a guaranteed revenue-generating purchase that concentrates costs in hardware equipment and electricity.

For instance, a business preparing to post a profit for the current tax year may be able to time its purchase of cryptocurrency mining rigs as a tax-deductible business expense that reduces its overall tax liability for the current year while generating income for the years the follow.

https://highenergytrading.com/beyond-the-buzzwords-what-the-new-dmg-ibm-partnership-really-means/

Eligible small businesses can benefit from new Section 179 deductions of up to $500,000 per year for electronic equipment purchases of this kind.

Businesses that are able to save on equipment purchases or electricity consumption have a clear advantage in any crypto mining scenario. Quebec-based company Heatmine is developing a solution for reusing heat generated by mining rigs to replace expensive natural gas heaters with revenue-generating electric heaters that mine cryptocurrency.

Burning through high-powered graphics cards to produce heat may not be the most efficient way to go about it, but it’s still better than fossil fuels, and unlike every other heater on the planet, it pays for itself. Radiator manufacturers may soon need to pay their customers to burn natural gas – and they still won’t compete.

Spending less on taxes while increasing revenues is an attractive way for businesses to control cash flow while optimizing their capital investment strategy. But cryptocurrency mining rigs also offer struggling businesses an opportunity to generate steady revenue without having to operate the equipment themselves.


Investing in Crypto Mining-as-a-Service

DMG Blockchain (DMGI.C) made more than $2 million last quarter simply by mining cryptocurrency, even as crypto is in a lull and Bitcoin continues to drop in price.

Because the company’s mining rigs operate on clean, inexpensive hydroelectric power, they are able to offer crypto mining-as-a-service to a broad range of investors and partners.

 

This widens the playing field for businesses located in areas that do not have access to clean, inexpensive electricity. The ability to outsource crypto mining to a third-party provider allows businesses to manage cash flow efficiently while taking advantage of tax breaks and deductions typically reserved for software vendors and other tech services.

DMG also recently constructed a 27,000 sq/ft crypto mining facility, one of the largest in North America.

To learn more about DMG check out these articles:

https://highenergytrading.com/this-new-crypto-mining-facility-has-enough-to-power-to-run-a-city-of-50000-homes-but-is-off-the-grid/

https://highenergytrading.com/30-cannabis-companies-dmg-blockchain-is-out-earning-why-it-matters/

 

Disclaimer: DMG is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

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