Bitcoin Farming Options

This project goes over a critical problem that cryptocurrency farms face: When to start building the farm. Since the underlying asset of building the farm is stochastic in nature, and in the case of Bitcoin, quite volatile. We know with this volatility comes a higher value to wait for profitable environments, despite having a positive NPV today. Motivated by extending the master’s thesis, as well as increases in Bitcoin price, my advisor approached this problem looking at how an investor can choose between timing the bitcoin farm and between a fixed or variable electricity tariff.