Salinas will have some mining machines only to collaborate with the security of the Bitcoin network. Although he does not find access to energy advantageous, he plans to mine BTC with the power generated by volcanoes.
Billionaire businessman Ricardo Salinas abandoned his plans to venture into Bitcoin (BTC) mining in Mexico. He believes that uncertain tax issues would imply risks of investment losses that he would not want to run.
Due to his position as an investor, Salinas said that he would choose to buy Bitcoin instead of mining it. He pointed out that he would allow miners to work but focus on acquiring more bitcoins.
Salinas considers that a mining company would suffer operating, accounting and financial losses if it did not sell its products. It would not obtain any income beyond the price of the cryptocurrency itself.
The owner of Grupo Salinas explained that Bitcoin mining companies hold the coins in inventory but do not earn any income. He added that they have to cover expenses related to the depreciation of machines, the operation, the energy, and the workers.
He commented that the Mexican Tax Administration System (SAT) would probably require those companies to declare their unsold production. However, he thinks this is unclear and is subject to changes and modifications.
Salinas said that buying Bitcoin outright seems less risky than building a mining infrastructure, which has to do with risk appetite. He explained that it would depend on the cost in Bitcoin of the machines and energy use. He highlighted that establishing a farm is not so simple as it requires knowledge, unlike buying Bitcoin.
The Mexican billionaire is abandoning his idea of setting up a large-scale mining farm but will have some machines to mine. However, he clarified that he would not do it for money but to cooperate with the security of the Bitcoin network.
Salinas Criticizes the Energy Plan of the AMLO Government
Ricardo Salinas criticized the plan of Andrés Manuel López Obrador (AMLO) to eliminate the energy self-sufficiency scheme and preferential rates. The businessman considers that this will cause many electrical installations to shut down.
Salinas explained that this plan harms private companies that use renewable energy to generate electricity in Mexico. They would have to pay high rates for transporting their production through transmission networks controlled by the Federal Commission of Electricity (CFE).
However, miner Ricardo Carmona, CEO of Mexico-based company Biomining, said this scenario would lead energy-producing companies to have large surpluses. He added that large Bitcoin mining companies could use it to make Mexico a mecca for large-scale Bitcoin mining.
Salinas Does Not See Any Advantage in Access to Energy
Salinas explained that Bitcoin mining requires access to energy and machinery but thinks that even available power would be disadvantageous in Mexico.
He said he could sell that energy to the market for 14 US dollar cents. However, he remarked that it needs to cost 4 US dollar cents for Bitcoin mining to be profitable.
His comments of the Mexican businessman indicate that he plans to go deeper into purchasing the pioneering cryptocurrency. Even though he recognizes the importance of mining, he thinks that Bitcoin mining will not meet his expectations as an investor.
By Alexander Salazar
