Bitcoin Mining Company Data & Analytics

A negative value does not mean that mining has no cost. It usually means the company discloses or calculates the metric on a net basis. Some mining companies may receive power subsidies, demand response revenue, curtailment compensation, power resale revenue, or other power-related credits. If these credits exceed the actual electricity cost for the period, the net electricity price or energy cost per bitcoin calculated under the formula may become negative.

For example:

• Net electricity price = electricity cost - power credits / electricity consumption
• Energy cost per bitcoin = electricity cost - power credits / BTC mined during the period
• If the credits exceed the electricity cost, the result will be below 0.

Therefore, a more accurate interpretation of a negative value is that, under the disclosure methodology used for that quarter, power-related revenue or credits covered the cost. It does not mean that the mining machines operated with no cost at all, nor does it mean the company can mine bitcoin at a negative cost over the long term.

Energy cost per bitcoin only includes costs directly related to electricity and energy. It can be understood as the electricity cost required to mine 1 BTC. It usually includes electricity expenses and energy procurement costs. In some cases, it may also be affected by power subsidies, curtailment compensation, power resale revenue, and similar items.

Cash cost per bitcoin has a broader scope. It is usually defined as the direct cash operating cost incurred to mine 1 BTC. In addition to electricity costs, it may also include site operating expenses, hosting fees, repairs and maintenance, mining pool fees, on-site labor costs, insurance, or other direct production-related expenses.

In general, cash cost per bitcoin is higher than energy cost per bitcoin because it includes more cost items. However, disclosure methodologies vary by company. Some companies classify certain expenses as hosting costs, some include them in production costs, and others only disclose a broader mining cost figure. Therefore, when comparing this metric, it is important to check whether depreciation, impairment, stock-based compensation, corporate overhead, interest, taxes, and other costs not directly related to mining operations are excluded.

Average operating hashrate refers to the average hashrate that a mining company actually uses for mining over a specific period, usually expressed in EH/s. It reflects the level of hashrate that is genuinely running and continuously contributing to production during that period.

It is different from deployed hashrate and installed hashrate. Deployed hashrate usually refers to mining machines that have been deployed at mining sites and are ready to come online. Installed hashrate usually refers to machines that have been installed or connected to infrastructure. However, these hashrates may not run stably throughout the entire quarter. They may be affected by power energization progress, downtime for maintenance, power restrictions, demand response events, site migration, or miner commissioning.

For quarterly comparisons, average operating hashrate is usually more meaningful than deployed hashrate because quarterly BTC production, electricity consumption, and cost per bitcoin all come from actual operations during that quarter. Average operating hashrate is therefore more closely aligned with these operating metrics.

For example, if a company deploys a large number of new miners in the final few days of a quarter, its period-end deployed hashrate may increase significantly, but those newly deployed miners will have contributed very little to that quarter’s BTC production. Looking only at deployed hashrate may overstate the company’s actual production capacity for the quarter.

It is important to note that disclosure methodologies vary across mining companies. Some disclose quarterly average operating hashrate, while others only disclose period-end hashrate, deployed hashrate, energized hashrate, or installed hashrate. Therefore, when comparing different mining companies, average operating hashrate should be used first whenever available.

Because mining companies often disclose data using multiple methodologies, and different websites may choose different data sources, calculation methods, or data priorities.

Common differences include:

1. Different quarterly basis: Some websites use calendar quarters, while others use the company’s fiscal quarters directly. If the company’s fiscal quarters do not match calendar quarters, the results will differ.
2. Different hashrate methodology: Some websites show average operating hashrate, while others show period-end hashrate, deployed hashrate, energized hashrate, or target hashrate.
3. Different cost methodology: Some websites use electricity-only cost, some use electricity plus hosting fees, and others use the company’s disclosed “average mining cost” or “cash cost.”
4. Different treatment of power credits: Power subsidies, curtailment compensation, power resale revenue, and similar items may be deducted by some websites but not by others.
5. Different treatment of non-cash items: Whether depreciation, impairment, stock-based compensation, changes in BTC fair value, and similar items are excluded can significantly affect cost per bitcoin.
6. Different source priority: Some websites prioritize financial reports, while others prioritize monthly production updates, investor presentations, press releases, or subsequently revised data.

Therefore, when two websites show different numbers, it does not necessarily mean one of them is wrong. More often, it means they are using different methodologies. We will try to specify the methodology used in our data notes.

A mining company’s business structure and disclosure practices may change over time. As a result, the same company may not use the same metric methodology consistently across different years.

Common reasons include:

1. Changes in business model: A company may shift from hosted mining to self-mining, or operate self-mining, hosting, cloud hashrate, data centers, and other businesses at the same time. When the business structure changes, the metric methodology may also change.
2. Changes in mining site assets: Acquisitions, disposals, joint ventures, relocations, expansions, or site shutdowns can all affect the reporting scope for hashrate, power capacity, and costs.
3. Changes in disclosure practices: A company may disclose “average operating hashrate” in one year, but only disclose “deployed hashrate” or “period-end hashrate” in another year.
4. Changes in cost classification: Some companies may adjust how they present electricity costs, hosting fees, maintenance expenses, depreciation, and other items, making cost per bitcoin not fully comparable across periods.
5. Changes in industry conditions: Bitcoin halving events, power restrictions, demand response programs, power market changes, accounting standards, or regulatory requirements may all affect what companies choose to emphasize in their disclosures.
6. Subsequent revisions or supplementary disclosures: Annual reports, investor presentations, or later quarterly materials may supplement or restate certain previously disclosed metrics.

Therefore, when organizing data, we do not look only at the number itself. We also try to record its source and methodology.