Because Bitcoin Services Inc. has 15 servers in operation, they are collectively mining 1.826 Bitcoins per quarter, or 7.304 Bitcoins per year. Valued at $7,000 per Bitcoin, that means the company is earning $51,128 per year in gross mining revenue. From there, we must subtract operation costs and administrative expenses to determine net revenue. However, let us assume (contrary to the information disclosed in the company's filings) that these are all $0.00 and the entire mining operation is pure profit. Present value of this cash flow at a 5% discount rate would value the company at $1.02MM. ? How does today’s price justify itself?
