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The share of administrative expenses on average for bitcoin miners is 50% of revenue.
Arcane Research experts conducted a study of the cost structure of companies involved in bitcoin mining and compared data on oil and gas companies and gold mining organizations.
The five largest public bitcoin mining companies were selected as a representative group, as well as five each in their respective industries. It turned out that the share of administrative expenses on average for bitcoin miners is 50% of revenue, which is significantly higher than that of the largest representatives of the oil and gas business in the world (2%) and gold miners (3%).
Arcane Research explains this by the fact that the mining industry is at the very beginning of its development, it is actively developing and, in order to attract talent, they prefer to pay high salaries and bonuses to top managers.
Meanwhile, this situation can be looked at from the other side: the very low level of administrative expenses in oil and gas and gold mining is also due to the fact that the share of operating expenses, including production costs, is higher for them than for bitcoin miners, even taking into account the high costs the latter for electricity and depreciation of mining equipment.
This state of affairs indicates that bitcoin mining, which inherently belongs to high-tech sectors of the economy, is potentially very attractive in terms of net profit margin, which means that this circumstance will play an increasing role in motivating investors to invest in this area. your funds.
This conclusion is already finds confirmation that despite the “crypto winter”. Public mining companies continue to increase investment in mining capacity, investing significant financial resources in this.
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