Mining · Equipment · Operations
Mining: setting up your activity and tracking your equipment
Are you planning a mining business or buying mining equipment? HODL Consulting helps you organise the project, prepare accounting records and document revenue and expenses.
Operating your own machines, third-party hosting and renting computing power involve different contracts and information requirements.
From equipment to mining revenue
Before purchasing: understand what you are financing
Start with the business model and contracts. Are you buying identified machines that you will own? Are you paying for hosting, rental or computing power? Who operates the equipment, where is it located and how is revenue paid? The answers determine the records to obtain and accounting questions to address.
We review the budget, financing, energy, maintenance, insurance, pool fees and contractual exit terms with you. An advertised purchase price does not describe the full investment or future running costs. Initial expenditure and recurring expenses need to be distinguished.
Build forecasts with visible assumptions
Expected production depends on the equipment, its availability and conditions on the relevant network. Euro receipts also depend on asset prices and conversion timing. We separate these assumptions so that each can be varied in the forecast.
For example, a project may produce the expected quantities but generate less cash if energy prices rise or the euro value falls. Technical downtime can add costs and reduce production. The purpose is to make these scenarios understandable, without treating a seller’s projected return as an achieved result.
At commissioning: build the equipment file
For company-owned machines, prepare invoices, references and serial numbers, ownership evidence, delivery and commissioning dates, and location. Financing, associated costs and intended use complete the file. Accounting treatment must reflect this reality: equipment used by the business, machines held for resale and a service contract are different arrangements.
If equipment is hosted abroad, contracts, invoicing and the location of activities require an appropriate assessment with the relevant professionals. A French registered office alone does not describe all project flows.
During operations: connect production, costs and receipts
- Production: pool statements, periods, assets and quantities allocated.
- Payouts: thresholds, dates, receiving wallets and deducted fees.
- Expenses: energy, hosting, maintenance, insurance and other services.
- Conversions: asset sales, valuations, commissions and bank settlements.
- Equipment: movements, replacements, repairs, downtime and disposals.
A wallet receipt does not always explain a single production period: it may cover several periods or be net of fees. Reconciliation should explain that difference and connect it with supporting records.
At year-end: document balances and accounting judgements
The file brings together equipment inventories, digital assets held, movements, expenses and valuation information. Contracts and events during the year help determine the accounting and tax treatment appropriate to your entity. The frequency of interim checks and deliverables are specified in the engagement letter.
Prepare an initial discussion
Describe the proposed model, countries involved, equipment quotations or invoices, contracts, budget and available records. We identify unresolved questions and the work required before defining the engagement scope.
Further reading: our mining accounting guide, business creation and growth advisory and support for international operations.
Do I always need to create a company?
The choice depends on your project, its organisation and your circumstances. We compare possible structures, running costs and obligations before selecting an approach.
Is mining income always taxed as non-commercial income (BNC)?
The taxpayer’s status and the entity’s tax regime must be distinguished. French tax guidance on certain mining income should not automatically be applied to a company subject to corporate income tax.
My equipment is hosted abroad: what should I prepare?
Contracts, invoices, provider details, proof of equipment ownership and the revenue payment arrangements. The location of the activity and cross-border transactions require a specific assessment.
What should I provide for an initial discussion?
A project description, equipment quotations or invoices, the hosting contract, an operating budget and, if operations have started, pool and wallet statements. These records help define the scope of our engagement.
Choosing a legal structure, French official guidance · French mining tax guidance: BOFiP, paragraph 1080
Discuss your project
Tell us about your business, your entity and the transactions you are considering. Together, we will define the scope and the information needed.