A July 9 post by @PricedinBTC on the “cost to mine Bitcoin” in the United States gathered the crypto community’s attention, especially considering the recent headlines that BTC miners have made. The crypto bear market and growing energy costs have caused a perfect storm for the mining sector and this has led some companies to lay off employees and others to defer all capital expenditures. Some went as far as raising concerns of Bitcoin miners hitting a “death spiral.”
In bear markets like this, inevitably a Bitcoin critic comes out and says that Bitcoin will soon collapse from a “miner death spiral”, meaning that miners will go offline because it is not profitable to run their operations, and then Bitcoin’s hash rate will fall, causing its…
— Cory Klippsten (@coryklippsten) July 6, 2022
However, Raymond Nasser, the CEO of Arthur Mining, a professional mining company operating in the United States told Cointelegraph that their margins don’t full concur with the data from @PricedinBTC.
Cost to mine 1 #bitcoin in every U.S. state pic.twitter.com/JKug0KtGVq
— Priced in ₿itcoin ∞/21M (@PricedinBTC) July 9, 2022
Arthur Mining’s current capacity is 25 megawatts (MW) and the company focuses on environmentally friendly energy sources. At first, one could dismiss their numbers as listed companies like Marathon Digital Holdings have 300 MW plants, but these rely on the traditional grid energy — even if a portion of the power originates from hydro-electric plants.
To achieve the best environmental, social and governance (ESG) practices, the smaller scale mining operations utilize undervalued flare and stranded gas from the oil and gas industry. Their secret is mobile Bitcoin mining facilities, tapping greener, more efficient and more profitable energy sources compared to traditional solutions.
Regarding the $16,000 production cost for miners, Nasser said:
“These diagrams are extremely subjective. The biggest new projects in the industry are looking for off-grid solutions, and this diagram represents some of the most expensive on-grid energy costs used in urban areas. Our all-in energy costs are lower than $0.02 kWh in two different U.S. States.”
Electricity costs have doubled in the past year
Data from QuickElectricity shows that from March 2022 commercial electricity costs per kilowatt/hour (kWh) ranged from $0.08 to $0.09 in the U.S. state of Idaho, Utah, Virginia, Texas, Nevada, North Dakota, Nebraska and Oklahoma.
One of the strong points of…
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