Explain the Concept of ‘Terminal Value’ as It Applies to the Long-Term Profitability of a Bitcoin Mining Operation

Terminal Value is the estimated value of a mining operation's cash flows beyond a forecast period where individual cash flows can be reliably projected. For a mining operation, it accounts for the value of the ongoing mining revenue, even as block rewards continue to diminish toward zero.

It is often calculated using a perpetuity growth model and assumes the operation will continue to be profitable due to rising Bitcoin price and/or improved efficiency.