The production cost of 1 BTC rises to $49,500 due to public miners
The production cost of 1 BTC rises to $49,500 due to public miners
Currently, the average cost of mining one bitcoin has increased to $49,500. This is due to public mining companies facing growing production expenses.
This was highlighted in a report by analytics firm CoinShares.
The report notes that in 2024, the mining industry faced significant production cost challenges as revenues fell and mining difficulty increased.
CoinShares now estimates the cost of producing one bitcoin among all miners at $49,500 (in Q1, the average cost was $47,200 per BTC).
However, this only includes cash expenses. When accounting for depreciation and dividend payouts, this figure rises to $96,100.
How Miners Handle Rising Costs
Mining companies are implementing various approaches to address growing expenses. For example, TeraWulf has reduced production costs by utilizing nuclear energy.
Riot has employed a strategy of cutting electricity consumption to offset expenses.
Meanwhile, Core Scientific has diversified its revenue streams by engaging in AI operations.
On October 29, an unknown solo miner successfully mined a Bitcoin block using a small, home-based Apollo miner.
