Cost Analysis — Are bitcoin miners burning too much cash? (Part 1 & 2) \ stacker news ~bitcoin

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Cost Analysis — Are bitcoin miners burning too much cash? (Part 1 & 2)medium.com/@v.rousseau31889/cost-analysis-are-bitcoin-miners-burning-too-much-cash-part-1-2-784237241905

210 sats \ 5 comments \ @k00b 11 Mar bitcoin_Mining

Compared to more established and traditional businesses, the cost structure of Bitcoin miners often results in the combined share of these expenses exceeding 100% of total revenue. This raises questions regarding the relevance of certain operations to the core business model.

However, the bull market that emerged in late 2024 could lead to greater spending, as miners may seek to capitalize on opportunities. This could result in overconfidence and potentially lead to cash-burning operations based on the assumption that Bitcoin prices will continue to rise indefinitely.

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10 sats \ 1 reply \ @halalmoney 11 Mar

Corporate miners should move to where the puck’s going to be (halving of block subsidies) and premise their operations on stranded energy.

0 sats \ 0 replies \ @Bell_curve 12 Mar

I think they are trying to but it's still a tough biz

0 sats \ 2 replies \ @Bell_curve 11 Mar

the margins are negative?

and the cost is higher than average btc price?

10 sats \ 1 reply \ @k00b OP 11 Mar

For the time being it looks that way.

21 sats \ 0 replies \ @028559d218 11 Mar

I hope the ones in the United States (the big corporate ones) get rekt. Foundry is absolutely bigger than it should be and getting mining 'out of the United States' would be good for decentralization and long-term security.