Key takeaways

• Mining can generate continuous BTC rewards, but it requires upfront hardware costs, ongoing electricity costs, and operational monitoring.

• Buying BTC is the simplest way to access BTC, but the result depends on when you enter the trade and your ability to stick to your plan.

• Electricity costs are a key factor that determines mining results. In the illustrative scenario below, mining appears to be more competitive when below about 0.05 USD/kWh, while buying tends to be more effective when above about 0.07 USD/kWh (assuming other variables remain similar).

Mining and buying are two common ways to accumulate BTC. Both can make sense depending on electricity price, time horizon, operational capability, and your risk tolerance.

This article explains practical trade-offs and then presents a simplified scenario study to show how electricity costs can change the calculation. The figures are for illustration only and are sensitive to network difficulty, operating time, fees, and the BTC price.

What do you get when you mine BTC

Mining converts hardware and electricity into BTC rewards over time. Many miners prefer mining because it spreads accumulation over many days rather than a single purchase day, which may reduce the impact of buying at an unfavorable time.

Most individual miners don’t mine solo. Instead, they connect their hardware to a mining pool like Binance Pool, where hashrate from many participants is combined to generate more stable and predictable payouts than solo mining.

Mining can also provide operational flexibility. If conditions change or you decide to exit, an ASIC may still retain some resale value even though resale prices may fluctuate significantly.

What do you get when you buy BTC

Buying BTC is operationally straightforward. You don’t need to choose machines, manage firmware, optimize cooling, monitor uptime, or coordinate pool and hosting setup. Your main decisions are how much to buy and when.

A spot BTC position also avoids daily operating costs. Mining has recurring costs that are mainly electricity, and those costs continue regardless of short-term BTC price fluctuations.

The biggest variable: your electricity cost

In the scenario used in this article, electricity cost is the main fluctuating factor. Below 0.05 USD/kWh, mining’s economics can become more attractive over a multi-year time frame. Between 0.05 and 0.07 USD/kWh, mining depends more on a longer time horizon and BTC price increases. Above 0.07 USD/kWh, buying often appears more efficient for the goal of net BTC accumulation in this simplified model.

These ranges are not guaranteed. Real-world results depend on variables including network difficulty adjustments, uptime, pool fees, hosting terms, and hardware lifetime.

Case study: 87,000 USD — Mine or buy?

This simplified example compares buying BTC today with deploying the same amount of capital into mining hardware and then paying electricity over time. The assumptions are clearly stated, and the results will change if any assumption changes.

Setup (illustration)

• Capital: 87,000 USD (5 * Antminer S23 Hyd at 17,400 USD per machine)

• Mining machine specs: 580 TH/s, 5,510W per machine, efficiency 9.5 J/TH

• Total hashrate: 2,900 TH/s = 0.0029 EH/s

• Total power consumption: 27.55 kW

• Network hashrate: ~873 EH/s (July 2026, source: mempool.space)

• BTC price: 62,000 USD

• Pool fee: 4% FPPS (Binance Pool) - small impact, excluded from net calculations for clarity

• Block rewards: 3.125 BTC (after halving)

• Assumption: no difficulty adjustment (difficulty may change over time and can extend the timeline)

Option A - Buy BTC

• BTC you can buy: 87,000 USD / 62,000 USD = 1,4032 BTC

• Maintenance cost: 0 USD (excluding custody and storage fees)

• Result: hold 1,4032 BTC from the first day; your BTC balance does not increase unless you buy more.

Option B - Mine BTC (gross production later is net after subtracting electricity)

• BTC mined per day: 450 BTC per day * (2,900 / 873,000,000) = 0,001495 BTC per day

• USD mined per day: 0,001495 * 62,000 USD = 92.68 USD per day

• Electricity per day: 27.55 kW * 24h = 661.2 kWh per day

Break-even comparison at different electricity prices

The table below shows in this simplified model how long it takes for mining to accumulate the same 1,4032 BTC that a buyer holds from the first day, along with cumulative electricity cost during that period. Assume the BTC price stays unchanged; pool fees and downtime are excluded for clarity.

What this scenario may be suggesting

At 0.05–0.06 USD/kWh, in this simplified model, mining reaches a level equivalent to buying (based on BTC valuation) after about 4.0–4.5 years, while the buyer holds all the BTC from day one with no operating costs.

At 0.07 USD/kWh, cumulative electricity costs come close to the initial hardware budget of 87,000 USD by the time mining reaches the BTC-equivalent level, with a timeline of up to 5.1 years in this model.

At 0.10 USD/kWh, mining does not seem competitive in this simplified comparison because cumulative electricity costs rise far beyond the initial hardware cost over the period required to reach the equivalent level.

Hardware lifetime also matters. This model does not account for depreciation, changes in efficiency versus newer hardware, maintenance, or downtime. Even after reaching the “equivalent level,” the machines may be near the end of their lifecycle or less competitive depending on market conditions.

When mining has an advantage

Even in situations where a simplified snapshot appears to favor buying BTC, mining can still be reasonable under specific conditions—especially for operators with structural electricity cost advantages, high uptime, and efficient infrastructure. Mining is also different from buying BTC once, because it converts infrastructure and energy into continuous BTC production over time.

For some participants, that operating model is part of the appeal. This model also provides flexibility: when the economics of mining are less favorable, an operator can choose to sell hashrate instead of mining directly depending on market conditions and available platforms.

Hardware can still pay back

The remaining value of the hardware also matters. A simple buy-vs-mine comparison often assumes the hardware investment of 87,000 USD depreciates to 0, which can exaggerate mining’s downside.

In practice, newer machines and related infrastructure may still retain resale value or be redeployed. Even a conservative remaining value of 15%–25% implies you could recover roughly 13,000–22,000 USD in value, which can improve effective break-even.

Tax treatment can change the picture

Tax treatment can also vary by jurisdiction. In some markets, mining equipment, electricity, and depreciation may be handled under corporate tax rules, which can change the post-tax economics compared with simply buying and holding BTC. This depends on local regulations and should be evaluated with professional advice.

In summary, buying BTC may be simpler, but mining can still be a sensible choice for operators with cost advantages and a long-term perspective.

Final thoughts

Mining and buying are both ways to build access to BTC, but they operate differently. The results of mining depend heavily on electricity price, uptime, and how network difficulty and the BTC price move over time. Buying concentrates risk around your entry timing, but avoids operational burdens and electricity costs.

If you’re considering the two options, you can start by looking at your all-in electricity cost per kWh and your real-world ability to run hardware reliably. In the scenario above, mining may look more competitive when it’s below about 0.05 USD/kWh, while buying tends to be more efficient when it’s above about 0.07 USD/kWh, assuming other inputs remain similar.

Of course, as always, it’s important to do your own research and make sure whichever option you choose fits your personal circumstances.

Read more

• Mining across market cycles: how Binance Pool helps miners stay resilient

• How retail Bitcoin miners can manage electricity costs

• Beyond hashrate - Binance’s guide to pool payouts and profitability

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