Ethereum co-founder Vitalik Buterin, in a recent post on X, set out a cost breakdown for Bitcoin mining and contrasted it with the cost structure of artificial intelligence inference. According to the breakdown he shared, the estimated cost of mining one Bitcoin stands at approximately $93,700.
Electricity consumed directly by mining equipment accounts for $40,600, or 43.3% of total expenses. Additional electricity costs add another $2,400, bringing overall power expenditure to approximately 46% of Bitcoin production costs. Computing infrastructure, including mining hardware, cooling systems, electrical equipment and financing expenses, accounts for roughly $37,600 per BTC, or 40% of the total. Other operational expenses, including labor, maintenance, facility rentals, insurance, taxes and connectivity, make up the remaining 14%.
Buterin said the estimated production cost exceeds JPMorgan's recent Bitcoin mining cost assessment of $85,000, highlighting the financial pressure facing cryptocurrency miners when Bitcoin prices decline. He also emphasized that AI inference operates under a different cost structure: unlike Bitcoin mining, which relies heavily on affordable electricity, AI operations require substantial investments in advanced processors and computing infrastructure. Consequently, AI companies may be better positioned to withstand higher electricity prices, while Bitcoin miners remain particularly sensitive to rising energy costs.