On average, bitcoin miners incur 50% of their revenues in administrative expenses.
Arcane Research conducted a study of the cost structure of bitcoin mining companies and compared data on oil and gas companies and gold mining organizations.
The five largest publicly traded bitcoin mining companies were selected as a representative group, as well as five each in the respective industries compared. It turned out that bitcoin miners have an average of 50% of their revenues as a share of administrative costs, which is significantly higher than the largest oil and gas businesses in the world (2%) and gold miners (3%).
Arcane Research explains this by the fact that the mining industry is at the beginning of its development, it is actively developing and to attract talent in it prefer to pay high salaries and bonuses to top managers.
Meanwhile, this situation can be viewed from another perspective: the very low level of administrative costs in oil and gas and gold mining is also due to the fact that the share of operating costs, including production costs, turns out to be higher for them than for bitcoin miners, even taking into account the high costs of electricity and depreciation of mining equipment.
This state of affairs indicates that bitcoin mining, which is essentially a high-tech industry, 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.
This conclusion is already finds confirmation in the fact that despite the “cryptozyme”. Public mining companies continue to increase investment in mining capacity, investing significant financial resources.