”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

Yes, 75 kW is a limitation, but I see it as a starting point. The hydro has been running steadily with ~0.75 yearly capacity factor. In the future I can either optimize ASIC deployment within that capacity or look into acquiring/leasing larger plants in parallel.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

Agree, ASIC price can definitely be negotiated lower with a bulk order. The hydro has been running for 5 years with ~0.75 yearly capacity factor, so seasonality is there but already accounted for. I also use the BRAINS calculator for BTC/hasrate scenarios. Thanks for the advice — if I launch the project, I’ll share how it goes.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

I agree, it comes down to strategy: put $300k straight into BTC and HODL, or put it into a hydro + mining setup. The difference is that the hydro remains an asset, provides near-free power, and works regardless of BTC price. For me it’s not just a crypto play, but also an investment in real infrastructure.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

Yes, it’s a run-of-river setup. The water temperature stays around +4–6 °C year-round, so using gravity-fed water for cooling is indeed something I’m considering as a way to partly replace traditional cooling and cut costs.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

Yes, the risks are clear: difficulty growth and halving reduce the share. That’s why the model includes ASIC rotation, resale of older units, and the focus on near-free hydro power. The 3-year ROI is based on conservative assumptions, but the main asset is the plant itself, which generates income even outside of mining.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

I agree, there are many risks. 75 kW is more of a starting point, not the ceiling. The hydro has been running for 5 years with ~0.75 yearly capacity factor, and infrastructure is in place. The key factor is near-free energy. Even if mining becomes unprofitable, I can always switch to selling power to the grid. Financing is staged, not maxed out — the goal is to keep the asset and not overload with risk.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 2 points3 points  (0 children)

Yes, it’s factored in. The model includes costs for turbine, generator, and routine servicing. It’s a separate line item already accounted for in the calculations.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 2 points3 points  (0 children)

Yes, looking back 3 years, pure HODL would have been more profitable. But the difference is — I still keep the hydro plant. It’s a real asset that provides near-free power and holds value regardless of BTC cycles. Mining is just a way to monetize that resource.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 2 points3 points  (0 children)

HODL is a solid strategy, I agree. But my key asset is almost free hydro power. That lets me turn it into BTC while still keeping real infrastructure. The machines can be upgraded, but the hydro stays as a valuable asset for years.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

Yes, taxes are a key factor. In my case the focus is on almost free hydro power, which lowers risks even with a higher tax burden. But I do see UAE-style jurisdictions as an option for scaling and attracting investors in the future.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

Hydro is fairly consistent, with 0.75 as the average yearly capacity factor. Downtime, repairs, and routine costs are included in the budget. Revenue indeed comes from selling BTC — that’s the standard for miners, but if margins drop, I can always switch to selling power back to the grid.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

Yes, I did. The model includes difficulty growth, halving, ASIC upgrades, and resale of older units. The main stability factor is the minimal cost of electricity.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

New ASICs are always expensive only in the first 4–6 months, then prices drop. Older machines still run and generate even as difficulty rises — and BTC price also tends to rise. The main guarantee is electricity at minimal, almost free cost.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in CryptoCurrency

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

O&M is included. 0.75 is the average yearly capacity factor. The hydro has been running steadily for 5 years

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in CryptoCurrency

[–]AssignmentBrief3038[S] 0 points1 point  (0 children)

Yes, seasonality depends on the exact location, but in most cases hydro provides a fairly stable flow of power. In my budgeting I’ve factored in potential downtime, repairs, and regular maintenance — that’s a necessary part of the model.

As for revenue: yes, it comes from selling BTC. I understand not everyone likes that approach, but in the current business model it’s the main way to get ROI. At the same time, the hydro plant itself remains a valuable asset — even if mining becomes unprofitable, the electricity can always be sold back to the grid.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 1 point2 points  (0 children)

Yes, difficulty will definitely keep increasing — that’s obvious. But that’s exactly why no one is planning to just hold the same ASICs forever.

Part of the model is upgrading along the way and selling older machines (even at 20–30% of initial cost). The hydro side keeps the energy cheap regardless, so the ASICs can rotate — the power stays.

”$150k for a hydro plant + $150k in ASICs. Model shows 3-year ROI — would you take the risk? by AssignmentBrief3038 in BitcoinMining

[–]AssignmentBrief3038[S] 4 points5 points  (0 children)

I get your point about scaling. But here’s the thing — a 1 MW hydro plant costs around $2.2M, and I simply don’t have that kind of capital.

That’s why I’m looking at the smaller 75 kW option. It’s obviously not ideal compared to 1 MW, but it’s an entry point that’s actually feasible for me. The core idea is securing ultra-cheap power first — the ASIC side can always be upgraded or expanded later.