Bitcoin is currently trading at $81,626, just below the $82,000 level. At the same time, the differences in mining costs among leading public companies highlight the significant differences in their operations, with some companies mining bitcoin for a fraction of the estimated network average.
Mining Bitcoin for Profit? Depends on Who Pays for the Electricity
On March 11, 2025, the spot price of Bitcoin hit a low of $81,626, drawing attention to questions about the profitability of mining. Data provider Macromicro.me estimated the average cost of mining one BTC at $85,233 as of March 9, based on electricity consumption patterns. However, this estimate differs sharply from the reported costs of large public mining companies, where the cost per coin varies from $21,000 to over $48,000. This cost range, from $21,000 to over $48,000, was derived from an analysis of about 280 different reports and financial disclosures.
Macromicro.me expense statistics have a one-day delay.
However, Macromicro.me forms its estimates and calculations using the Cambridge Bitcoin Electricity Consumption Index, which assumes a global electricity cost of $0.05 per kilowatt-hour (kWh). By applying this rate to Bitcoin’s annual electricity consumption — approximately 176.69 terawatt-hours — the platform estimates the cost of electricity per BTC alone. However, this calculation does not take into account important operating costs such as the type of equipment, labor costs, and maintenance, creating a narrow view of the overall costs of mining.
The $85,233 valuation mentioned on March 9 likely reflects an extremely broad operating spectrum, and the site’s reliance on one-day data lag and limited metrics reduces its relevance to individual companies. Many miners operate below that threshold. MARA, the industry’s largest publicly traded miner by market cap, reported a cost of $28,801 per coin in its fourth-quarter 2024 earnings. That figure, derived from U.S. Securities and Exchange Commission (SEC) filings and calls, reflects efficiencies achieved through energy procurement strategies and scaling operations.
Meanwhile, Hive Digital Technologies reported a mining cost of $48,308 per BTC in Q1 2024, highlighting the financial challenges associated with high-cost operations. Of the 12 publicly listed mining companies examined in the study, only a few — including MARA and Riot Platforms — provided a transparent breakdown of costs. For companies that do not disclose direct mining costs, our study applied an estimate of $25,000 per BTC based on an aggregation of 280 data points, including earnings reports and Canaccord’s mining sector analysis for 2025.
While these estimates reflect typical expenses for large miners, they do not take into account firm-specific factors such as electricity contracts and geographic advantages. MARA’s $28,801 expenses reported in its Q4 2024 report reflect investments in energy-efficient infrastructure. Riot Platforms reported $21,482 per coin expenses in its June 2024 results, benefiting from Texas electricity credits and immersion cooling technology. Meanwhile, Hive’s $48,308 expenses, calculated based on Q1 2024 revenue and performance data, highlight the difficulty of balancing renewable energy commitments with operating costs.
For the remaining companies, estimated costs in the $25,000 to $30,000 range indicate modest profit margins at the current Bitcoin price. For example, Cleanspark, in its FY24 report, indicated a cost per coin of $21,400 for its wholly owned entities, although additional corporate expenses will likely increase its effective cost. This difference in costs highlights an underlying divide: miners operating below $25,000 per BTC maintain a comfortable buffer, while those above $30,000 face eroding margins.
With Bitcoin trading 2.3% below Macromicro.me’s $85,233 valuation but well above most companies’ actual costs, profitability ultimately depends on operational discipline. Marathon and Riot, for example, could remain profitable even if Bitcoin fell to $28,000, while Hive and a few other miners would require prices above $48,000 to avoid losses. As of the second week of March, the data clearly shows that Bitcoin mining remains an area of sharp economic contrasts.
Source: cryptonews.net
