$11.2M in Bitcoin Mining Revenue: Is It Worth the Risk?

Note that $11.2 million in Bitcoin mining revenue sounds impressive. Hyperscale Data is crowing about their success, and CEO William Horne couldn’t be more pleased. They’ve opened up new mining operations, brought in Antminers and are now letting Bitcoin flow in. Stop right there before you jump to conclusions! It’s time to add a dose of realism to this new digital gold rush. Are we truly looking at the whole story in this?

Environmentally Unsustainable Digital Gold?

Bitcoin, at its core, is a great technological achievement. But let's not pretend it's green. Hyperscale Data is in the process of bringing thousands more Antimners online, which means directly increasing energy consumption. Though they’re currently running in Montana with access to 20 MWs of energy, the source of that energy has great significance. Is it renewable? Or are we just burning more fossil fuels to hunt for bitcoin?

Think about it this way: the energy needed to mine Bitcoin is roughly equivalent to powering entire countries. We’re not just discussing a resource allocation problem—we’re discussing a move that would worsen already major environmental harms. Is that wise, let alone a sustainable way to build our future? Is it worth mining if it puts our planet at risk?

It’s the equivalent of sending a fleet of gas-guzzling SUVs on a route to drop off the organic kale. The aim may well be noble, but the methods are patently dangerous. The true public cost of that Bitcoin is far greater than the revenue it boasts.

Regulatory Wild West or Settled Frontier?

The regulatory landscape as it relates to Bitcoin and cryptocurrency in general is still unclear, and that’s an understatement to say the least. As Hyperscale Data grows both nationally and internationally, governments across the world are still trying to figure out how best to regulate this budding industry. What happens when the hammer finally drops?

We’ve highlighted efforts by governments to pressure or outlaw exchanges, their efforts to require KYC/AML processes and disclosure, and by some measures even ability to “ban” crypto currencies. What if Montanans vote this fall to ban new Bitcoin mining operations. Or, say, the US government decides to heavily tax them. What would that do to Hyperscale Data’s bottom line?

In some ways, that’s a lot like trying to build a house on sand dunes. You can have a lovely veneer of a building, but if it’s not going to hold up over the long term… The risk of change on these rules is a Sword of Damocles hanging over the entire Bitcoin mining industry.

Series F: Smart Move or Fool's Gold?

Hyperscale Data is issuing a Series F Exchangeable Preferred Stock. While a common structure for such divestment, this stock will actually be exchanged for shares of Ault Capital Group (ACG). Only those who exchange get ACG shares. Are you ready for this?

The company’s hands are tied. It’s splitting in two. Hyperscale Data will focus solely on data center developments, and ACG will continue as a separately managed company. This creates both opportunity and risk.

On one hand, it would release significant value by letting investors concentrate their bets on the specific business they’re most interested in. Conversely, it introduces greater complexity and uncertainty. What if ACG underperforms after the divestiture? What if the exchange ratio for the Series F Preferred Stock is bad?

It would be similar to betting on a horse race, except the horses are switching places every furlong. You have to do your homework, know what you’re getting into, and be willing to lose your shorts. Before you invest, ask yourself: Do you fully understand the risks involved? Do you have the appetite to withstand losses in order to earn high returns?

Remember this: past performance is not indicative of future results. Such estimates and projections are based upon Hyperscale Data’s best judgment, but are in many ways speculative and involve a variety of risks and uncertainties. As always, things can change on a dime in the world of crypto.

So, by that measure, is $11.2 million in Bitcoin mining revenue worth the risk? That’s a question you’ll have to figure out for your own situation. But wait — before you jump, look long and hard at the big picture. Read past the shiny, digital gold carrot wonk bait. Now throw in the bottom line environmental impact, the regulatory uncertainties, and the hidden abilities to create market volatility. Then, make an informed decision. Your bottom line – and maybe the world – will thank you for it.

The temptation of easy money is a helluva drug, fam. Often the most profitable decision is the one you take no action on.

The allure of quick riches is powerful, folks. But sometimes, the most profitable move is the one you don't make.