In its latest third-quarter mining report, CoinShares announced that Bitcoin mining costs have reached record levels.
CoinShares: Bitcoin Mining Costs at Record Level
According to the report, the production cost of each Bitcoin is approximately $49,500 when cash expenses alone are taken into account, while this figure increases to an average of $96,100 when additional costs such as depreciation and stock compensation are included.
CoinShares Chief Researcher James Butterfill noted that despite the high costs, mining companies continue to expand their infrastructure and plan to invest more in anticipation of future price increases.
According to previous data, the total computing power of the Bitcoin network had once reached an all-time record of 803.75 EH/s. Over the past seven days, the network’s current average computing power has dropped to 749.05 EH/s.
However, high interest rates and volatility in the crypto market have limited the financing channels of mining companies, and it has been observed that many companies are forced to raise funds through stock issuance.
CoinShares has advised mining companies to diversify their revenues by investing in artificial intelligence technology.
The report also noted that if the mining industry shifts to more environmentally friendly energy sources, it expects a 63% reduction in carbon emissions by 2050.
*This is not investment advice.