Valuing a bitcoin mining operation for court
Litigation over a proposed bitcoin mining operation required a valuation expert who understood the industry, could build a defensible opinion, and explain it clearly to a judge. The client won.
Litigation support Bitcoin mining Expert testimony Emerging industry
Asset type
Proposed mining operation
Purpose
Litigation support
Standard
Fair market value
Outcome
Favorable ruling
The situation
The dispute centered on a bitcoin mining operation that had been planned but never constructed. Gibraltar was retained to determine economic damages incurred by one of the parties — and to defend that opinion in court against a competing expert.
What we had to learn
Bitcoin mining is specialized. Before reaching a conclusion, we built a working knowledge of how the industry functions.
- How miners are paid — through solving cryptographic problems, generating new bitcoin and receiving bitcoin rewards, as well as scheduled reductions in those rewards.
- Why power costs dominate — electricity is the primary expense, and access to cheap, reliable power largely determines whether a site is viable.
- Why location matters — climate, grid reliability, and regulatory environment all affect operating costs. Not every site with power is a good mining site.
What we did
We researched the industry in depth, evaluated the site's specific power access and cost structure, and built a financial model grounded in real market data. Our report and expert opinion were designed to be technically sound and easy for the court to follow.
The result
The judge ruled in our client's favor. Gibraltar's valuation and expert testimony were central to the outcome.
Need a valuation expert for litigation?
Gibraltar handles expert engagements across a wide range of industries — including those where we have to build our knowledge of the business from the ground up. If business value is in dispute, we welcome the conversation.
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