TeraWulf, according to seekingalpha.com, mined 323 Bitcoins in November, up by 3% from October mining operations thanks to increased transactions and fees on the Bitcoin network so to say.
Judging from an average cost per bitcoin mined at $11.3k per bitcoin produced, or approximately $0.037/kWh in November, we are looking at a little over $11 million in profit.
Make no mistake, like every business venture, not a lot of people diving in tend to make it out big, some crash land, some fall on their feet but drop face down regardless as time progresses. With bitcoin mining, we've had a couple of negative balance business operations, majority of these cases blame it on the bear bitcoin market.
Whilst this is a significant player in the profitability of bitcoin mining, it isn't always the cause of the absence of profitability for some miners.
Bitcoin Mining Is Fair
Yes, mining equipments are expensive, electricity bills are long, heck, the media has recently cooked up a new narrative of bitcoin mining sucking up water from the earth, saying shit like a single bitcoin transaction costs a pool of water, well, story for another day or later today.
There's still a far wide gap between the cost of mining bitcoin and the profits. If we take $11,000 to represent the cost - as the closest to real-time bitcoin mining cost - and $41,000 to represent the value of 1 Bitcoin, the cost here represents about 27% of what is generated. Surely, spending 27% to yield 73% more is largely significant, not many businesses can boast of such returns.
That said, absolute profitability, if I dare to say, will generally depend on factors like the present debt capital a miner holds, the maturing of these debts thereof and the management of these facilities.
Unhealthy debts will more often than not, affect a business negatively just as mismanagement.
The fairness and rewarding nature of Bitcoin mining is not widely discussed, this is a network that prioritizes inclusiveness by core designs and will reward honest participation. While some may say that the success of a miner largely depends on its miner hash - true to some extent, but not entirely - luck comes into the picture once a while to fasten the inclusive core design.
For example, last month, a report surfaced on a miner with a 0.0004% of Bitcoin’s Hashpower succeeding in mining a bitcoin block with a total of 6.887 BTC as rewards. This event is said to be possible only once in 5 years, considering the size of the mining against the mining network.
Bitcoin mining is poised to become a bigger business venture as more and more awareness is being created of this network.
Particularly, with institutions coming into the picture and some “experts” already making predictions of what's to come - big wave they say - of both users and value, we should be expecting this network to blow up. One of the things that might manifest at some point, though not directly tied to the Bitcoin network, will be options trading on the mining hash of the Bitcoin network. With tokenization, I can't say it would be too difficult to integrate these directly on-chain with sidechain contracts - if they don't already exist.