The Power of Reinvestment
Last updated
Last updated
Self-sustaining Growth As explained in the previous section, a percentage of our budget is dedicated to reinvesting in our farms. That means, our farms may grow in size without the issuance of new shares. Through this, we will not only be able to grow our farms in size, but also fund the installation of additional farms in the future. This way, our project can grow indefinitely, without requiring additional funding through the issuance of Infinity Hash shares. Moreover, the larger our farms grow, the larger the reinvestment budget will grow as well. This creates an exponential growth effect on our mining farms, which could very quickly outpace the funding generated by the share sales alone. Thanks to that, Infinity Hash share holders could in the future be earning mining returns from machines funded with a much higher budget than was initially invested.
On top of that, the higher Bitcoin price goes, the higher ROI our mining farms will be able to obtain. That will cause Infinity Hash share holders to see their earnings increased as Bitcoin price grows. This is because we deduct energy costs from the mining generated in the farms. As energy costs remain relatively constant in dollars, higher Bitcoin prices increase our profit margins, allowing us to distribute higher earnings to share holders. Concordantly, the higher returns the miners obtain, the more machines we will be able to buy. In case of a substantial Bitcoin price increase, the growth rate of our farms would greatly accelerate. The following table shows a ROI estimate for different Bitcoin prices, assuming mining difficulty remains constant. Keep in mind that these estimates do not take into account reward increases caused by the reinvestment budget. Real ROIs could be a lot higher than this, especially if Bitcoin prices continue to go up.
$20,000
10.5%
115
$30,000
18.5%
65
$40,000
30%
40
$50,000
40%
30
$60,000
50%
24
$100,000
100%
12