Breaking down Bitcoin mining’s cost of production

Quick Take

• Our analysis of 11 mining companies’ income statements shows their realistic costs for mining 1 bitcoin range between $4.2k to $14.2k.
• Factoring in other cash-based operating expenses, we get a further cost range between $8.2k to nearly $30k.
• That suggests energy costs no longer necessarily make up the largest part of a Bitcoin mining business as the industry grows industrialized. 
• Meanwhile, stock-based payments have become a popular method for mining firms to cover parts of their operating expenses.