{"id":23733,"date":"2025-04-26T12:39:37","date_gmt":"2025-04-26T12:39:37","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=23733"},"modified":"2025-04-26T12:39:37","modified_gmt":"2025-04-26T12:39:37","slug":"bitcoin-mining-costs-jump-to-137000-per-coin-when-accounting-for-non-cash-expenses-coinshares-2","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=23733","title":{"rendered":"Bitcoin Mining Costs Jump To $137,000 Per Coin When Accounting For Non-Cash Expenses: CoinShares"},"content":{"rendered":"<div>\n<p><strong>Bitcoin <\/strong>(CRYPTO: <a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/quote\/btc\/usd\">BTC<\/a>) mining expenses rose sharply in the final quarter of 2024, with <strong>CoinShares <\/strong>reporting that the total average cost to produce one Bitcoin, including non-cash items, <a href=\"https:\/\/www.benzinga.com\/money\/how-to-mine-bitcoin\">climbed to $137,018<\/a>.<\/p>\n<p>This figure includes depreciation and stock-based compensation, offering a more comprehensive look at the financial stress facing miners despite the strength in Bitcoin&#8217;s market price.<\/p>\n<p><strong>What Happened: <\/strong><a href=\"https:\/\/blog.coinshares.com\/coinshares-q4-2024-mining-report-cf65cbb7610b\">According<\/a> to CoinShares\u2019 Q4 2024 Mining Report, the weighted average cash cost to produce a Bitcoin among publicly listed miners jumped 47% quarter-over-quarter, from $55,950 in Q3 to $82,162 in Q4.<\/p>\n<p>Excluding outliers like <strong>Hut 8<\/strong> (NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/HUT#NASDAQ\">HUT<\/a>), which saw costs skewed by a large deferred tax expense, the cash cost averaged $75,767.<\/p>\n<p>Despite the rising cost base, most miners remained marginally profitable, with Bitcoin trading around $82,000 throughout Q4. <\/p>\n<p>However, the inclusion of non-cash expenses, such as accelerated depreciation of mining equipment and stock compensation, paints a more complex and potentially concerning picture for the industry. <\/p>\n<p>The $137,018 total average cost represents a significant gap between headline profitability and actual financial sustainability when all expenses are factored in.<\/p>\n<h3 class=\"wp-block-heading\">ASIC Depreciation And Competitive Pressures<\/h3>\n<p>A major driver of these costs is the fast-paced depreciation cycle of ASIC (application-specific integrated circuit) hardware, which must be frequently upgraded to remain competitive. <\/p>\n<p>Unlike gold mining equipment, which maintains utility over long periods, Bitcoin mining hardware quickly becomes obsolete, forcing firms into continuous reinvestment.<\/p>\n<p>&#8220;This dynamic results in a unique &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/markets\/cryptocurrency\/25\/04\/45017261\/bitcoin-mining-costs-jump-to-137000-per-coin-when-accounting-for-non-cash-expenses-coinsha\" alt=\"Bitcoin\" mining costs jump to per coin when accounting for non-cash expenses: coinshares>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (CRYPTO: BTC) mining expenses rose sharply in the final quarter of 2024, with CoinShares reporting that the total average cost to produce one Bitcoin, including non-cash items, climbed to $137,018. This figure includes depreciation and stock-based compensation, offering a more comprehensive look at the financial stress facing miners despite the strength in Bitcoin&#8217;s market [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-23733","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/23733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23733"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/23733\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}