Galaxy Digital Mining Associate Brandon Bailey and Research Associate Karim Helmy join the show to cover a new accounting methodology for Bitcoin miners. In this episode: 

• Galaxy's new miner margins accounting methodology
• Brandon and Karim origin stories in mining
• How the randomness-based miner fingerprinting works
• How Karim thinks about miner depreciation schedules
• Why the Bitcoin e-waste paper understates the expected lifetime of Bitcoin ASICs
• S9s are still a quarter of the Bitcoin network
• Why Karim and Brandon created the new accounting framework
• The differences between marginal, direct, and total cost of production for BTC miners
• Does the sell side capably cover Bitcoin miners?
• What you would expect to see for marginal and total cost of production for established Bitcoin miners
• Why miners focus on marginal cost rather than total in their storytelling
• Major bottlenecks preventing the addition of new hardware
• Why hashrate may not converge to price in the near term
• Why the chip shortage advantages incumbents in Bitcoin mining
• Why Kazakhstan is scaling back their Bitcoin mining
• Why mining manufacturers do not get priority access to the best foundry capacity
• Why established miners will be able to mine Bitcoin at favorable rates for the near and medium term
• Why of the accounting identities Galaxy would prioritize when evaluating public mining companies
• How Galaxy arrived at a 3 year depreciation period for the average mining unit
• What advice Brandon and Karim would give you public market analysts evaluating mining companies

See the full write up and sample model here. 

Sponsor notes: 

• This episode is brought to you by Withum, a top 25 accounting firm with a cutting-edge Digital Currency and Blockchain Technology practice. To learn more, visit  withum.com/crypto
• OurCrowd analyzes companies across the global private market, selecting those with the greatest growth potential, then brings them to you. Get started at OurCrowd.com/otb