Smart Timing for Mining: A Deep Learning Framework for Bitcoin Hardware ROI Prediction
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Abstract (arXiv)
Bitcoin mining hardware acquisition requires strategic timing due to volatile markets, rapid technological obsolescence, and protocol-driven revenue cycles. Despite mining's evolution into a capital-intensive industry, there is little guidance on when to purchase new Application-Specific Integrated Circuit (ASIC) hardware, and no prior computational frameworks address this decision problem. We address this gap by formulating hardware acquisition as a time series classification task, predicting whether purchasing ASIC machines yields profitable (Return on Investment (ROI) >= 1), marginal (0 < ROI < 1), or unprofitable (ROI <= 0) returns within one year. We propose MineROI-Net, an open-source Transformer-based architecture designed to capture multi-scale temporal patterns in mining profitability. Evaluated on data from 20 ASIC miners released between 2015 and 2024 across diverse market regimes, MineROI-Net outperforms recurrent, convolutional, and attention-based baselines, achieving 83.2% accuracy and 83.5% macro F1-score. The model demonstrates strong economic relevance, achieving 97.8% precision in detecting unprofitable periods and 81.5% precision in detecting profitable ones, while avoiding misclassifying profitable scenarios as unprofitable and vice versa. These results indicate that MineROI-Net offers a practical, data-driven tool for timing mining hardware acquisitions, potentially reducing financial risk in capital-intensive mining operations.
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References · 12
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- 2024TSLANet: Rethinking Transformers for Time Series Representation Learningcited by 71
- 2022PreBit -- A multimodal model with Twitter FinBERT embeddings for extreme price movement prediction of Bitcoincited by 7
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- 2020The cost of Bitcoin mining has never really increasedcited by 2
- 2013The Unreasonable Fundamental Incertitudes Behind Bitcoin Miningcited by 1
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