TechFlow news, December 13 — CoinShares' latest research report shows that the average cash cost of mining Bitcoin for publicly listed miners rose to $55,950 in the third quarter, a 13% increase from $49,500 in the second quarter. When including non-cash expenses such as depreciation and stock-based compensation, the average mining cost reaches $106,000.
The report attributes the rising mining costs primarily to three factors: AI-related investments diverting capital away from miner expansion; certain mining companies focusing on a HODL strategy rather than scaling operations; and higher electricity costs during summer months in Texas impacting production.
In terms of individual company performance, Marathon emerged as the lowest-cost miner in cash terms, benefiting from increased Bitcoin production and tax incentives; TeraWulf ranked third due to a 92% decline in debt expenses and a 20% overall cost reduction; Riot dropped to seventh place despite improvements in operational efficiency.
Looking ahead to 2025, the report anticipates that AI-related ventures could present new opportunities for miners like TeraWulf and Cipher; equipment costs may rise alongside increasing Bitcoin prices; and some mining firms may face financial pressures, warranting close attention to associated risks.
