There is a lot of different enterprise-scale crypto mining operations active as I’m writing this story.

Some do it as a side business

Most common companies that go about crypto mining as a side business want to capitalize on excessive processor power or negligible marginal costs for the energy of miners.

Most do it as a core business

Companies that go about crypto mining as a core business chose to dedicate facilities and purchase dedicated mining equipment. Energy is bought on the market.

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Now to the billion-dollar question. How to turn non-profitable mining operations into profitable?

The profitability of crypto mining through time can change for the better or for the worst.

There are two main factors influencing the profitability of crypto mining operations. First is the price of the mined crypto on the market and the second number of transactions in a given moment.

The number of transactions at any given moment is something companies can’t really influence.

Even if the market price of crypto currency at the given moment can usually not be influenced, history teaches us that on a time scale long enough most probably any cryptocurrency will hit the desired price somewhere in the future.

And now that we know how things are we have to translate the knowledge into hands-on advice on managing the cash flow of crypto mining operations.

If crypto is mined as a side business with negligible ongoing costs waiting for the price to come to the desired level should be the solution.

If crypto mining is the core and only business then cash flow management becomes more complex.

Namely, bills have to be paid and employees need money to survive. So part of the mined crypto has to be sold within the given months. The only optimization is to speculate price rise within one month or even more common to avoid price drop.

But anything beyond bare necessity(profit and amortization cost) should stay in crypto and wait for the desired price to be reached on the market in the future time.

In order to operate a profitable crypto mining operation, you must view your mined cryptos as an investment.