How Do Changes in Interest Rates Indirectly Affect a Miner’s Profitability?

Changes in interest rates indirectly affect a miner's profitability through several channels. Higher rates increase the cost of capital for debt-financed hardware purchases, making expansion more expensive.

They also increase the discount rate used to value future cash flows, reducing the present value of future block rewards. Finally, interest rate changes can influence the overall market sentiment and the price of the cryptocurrency, which is the primary driver of revenue.