Bitcoin mining costs soar 47% to $137K in Q4 amid rising input costs, tax liabilities

The average cost to mine one Bitcoin increased to $82,162 in the fourth quarter of 2024, with factors such as hardware deployment and tax expenses driving the increase. Depreciation and stock-based compensation also contributed to higher costs. Some companies were able to reduce costs through efficiency gains. Electricity remains the largest direct mining cost. Tariff increases on imported rigs may impact future breakeven costs for miners. The industry is focusing on improving hardware efficiency and diversifying revenue streams.