The Unique Property Insurance Considerations For Bitcoin Mining Operations Today

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It is crucial for Bitcoin mining operations to have adequate insurance coverage and understand their rights to recovery should their operations suffer losses. As far as traditional property-related risks, they are similar to those of any brick-and-mortar technology company, but also have additional, unique considerations.

Who Are The Miners And Who Owns The Mines? Structure Of The Operations

Properly distinguishing between who owns the mine and who owns the ASICs (mining machines, called application-specific integrated circuits) is a critical distinction for insurance purposes. In some instances, the owner of the facility housing the ASICs does not actually own the machines and only provides power, space, support and maintenance for the miners. Other types of Bitcoin mining operations own all of the equipment and retain all of the mining rewards, or have some other types of arrangements.