According to a recent research report from CoinShares, the average cash mining cost of Bitcoin for listed mining companies increased by 13% in Q3, reaching $55,950. When non-cash costs such as depreciation and equity incentives are factored in, the average mining cost rises to $106,000. The report attributes the rise in mining costs to three primary factors: the AI boom dispersing mining companies’ expansion funds, some mining companies focusing on holding rather than expanding operations, and increased electricity costs in Texas during the summer.
In terms of specific mining company performance, Marathon has the lowest cash costs due to increased Bitcoin production and tax incentives, while TeraWulf ranked third due to a significant 92% reduction in debt expenditures and a 20% reduction in costs. Riot, despite improved operational efficiency, dropped to seventh place.
The report predicts that AI may bring new opportunities to mining companies like TeraWulf and Cipher in 2025, while machine costs may increase with rising Bitcoin prices. Some mining companies may face financial pressure, so it is recommended to monitor risks.
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<p>The post Rising Bitcoin Mining Costs: Crypto Miners Face Financial Pressure Amid AI Boom first appeared on CoinBuzzFeed.</p>
