Mining economics terms including profitability, mining costs, ROI, CAPEX, OPEX, payback, depreciation and break-even concepts.

Mining Revenue

The total value generated by mining before applicable expenses are deducted.

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Mining Expenses

The costs required to operate and maintain a mining operation.

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Mining Cost

The costs associated with producing mining output.

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CAPEX

Short for Capital Expenditure, meaning capital investment in long-term assets.

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OPEX

Short for Operating Expenditure, meaning recurring operating expenses.

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Return on Investment

A measure of financial return relative to the capital invested.

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Depreciation

The allocation of a long-term asset cost over its useful period.

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Equipment Depreciation

Allocation of mining equipment cost over its useful operating period.

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Mining Profitability

A measure of the economic efficiency of a mining operation.

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Cost per Hash

Mining cost normalized by a unit of computational power.

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Mining Tax

Tax obligations associated with mining and the receipt or disposal of crypto assets.

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Tax Deduction

A legally permitted reduction of taxable income or tax liability.

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Tax Base

The amount or measure used as the basis for calculating a tax.

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Tax Rate

The percentage or other rate applied to a defined tax base.

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