Mining Revenue vs Cost
Multi-line view of daily mining USD revenue vs estimated electricity cost (Cambridge CBECI methodology, 0.05 USD/kWh × 30 J/Th).
What is it?
Multi-line representation of the two economic components of aggregate mining: revenue (coinbase × BTC price, upper line in bull market) and estimated electricity cost via Cambridge CBECI methodology (hash rate × 30 J/Th × 0.05 USD/kWh, typical lower line). The gap between the two lines represents the aggregate operational gross margin of miners.
How to read
Read the vertical gap between the two lines: a wide positive gap (revenue >> cost) indicates solid operational margins. A convergence of the two lines indicates margin compression and economic stress. If the cost line crosses the revenue line, the mining sector is in aggregate loss - historical capitulation trigger.
Key zones
Gross margin > 100% (revenue = 2 × cost): strong economic health typical of bull market phases. Margin between 0 and 50%: competitive pressure, some marginal miners exit. Negative margin: imminent capitulation, wave of shutdowns followed by downward difficulty adjustment.
What to observe
Revenue/cost crossovers are critical markers: they typically anticipate capitulation waves and negative difficulty adjustments. Watch the divergence of the two lines over the cycle: during bull runup, revenue takes off well above cost; during bear market, both converge until crossover.
Historical context
Major capitulation phases (late 2018, mid-2022) were preceded by several months of revenue/cost convergence and occasional crossovers. The Cambridge CBECI model has become industry standard for estimating global mining electricity cost. Standard parameters (0.05 USD/kWh, 30 J/Th) reflect world averages - regional analysis would give more contrasted results.
Expert notes
The cost model used does not capture capital cost (ASIC amortisation, opportunity cost), nor non-electricity operational costs (cooling, personnel, maintenance). The displayed gross margin therefore overestimates true net margin. For complete analysis, integrate an additional operational cost factor (typically 20-30% of electricity cost).
Common mistakes to avoid
Reading the cost line as a real market cost is misleading - it is a world average estimate that masks enormous regional variations. A Texas miner at 0.03 USD/kWh can remain profitable well below the average cost line, while a European miner at 0.15 USD/kWh can be losing well above. The metric reflects aggregate sector health, not individual profitability.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/mining-revenue-vs-cost/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "mining-revenue-vs-cost",
"timeframe": "1y"
}Required tier: pro. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
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Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.