Bitcoin Mining Costs Soar to $55,950: CoinShares Report Reveals Rising Challenges for Miners

According to a recent report from CoinShares, the average **cash mining cost** for Bitcoin among listed mining firms rose to **$55,950** in Q3, marking a **13% increase** from the previous quarter’s $49,500. When including non-cash costs such as depreciation and equity incentives, the total average mining cost escalates to **$106,000**. This surge in costs can be attributed to various factors, including the diversion of expansion capital towards the burgeoning **AI sector**, a notable shift of some firms towards a **HODL strategy**, and increased **electricity expenses** experienced during Texas’s summer months. In terms of individual company profitability, **Marathon** reported the lowest cash costs, benefiting from enhanced Bitcoin production and advantageous tax incentives. In contrast, **Riot** slipped to the seventh position, despite operational improvements. As the industry looks to 2025, the convergence of AI and mining could present new possibilities, although potential financial pressures merit close scrutiny.