Excellent dig. It was interesting reading their SEC K-1 filings, particularly the higher-than-expected payroll expenses. Rolf Verslusius might have been right after all: the lone wolf miner who has no employees might have an advantage.

Let's say the average corp-o-mine's cost per BTC is $16k, now that ASIC prices are cheaper (thus depreciation expense would be lower).

Let's pit them against a typical small miner in the U.S. I assumed all capital costs are amortized over 3 years.

• Warehouse rent + fixed costs: $3500 + $500 = $4k/month
• Equipment: 300x Bitmain Antminer S19 95T = 1MW load | $6000 x 300 = $1.8m --> $50k/month
• Electricity price: 6¢/kWh all-in x 720,000 kWh = $43.2k/month
• Equipment repairs: 15%/year net failure rate x $1.8m = $22.5k/month
• Buildout cost: $200/kW x 1MW = $200k --> $5.6k/month
• Farm hashrate: 300x 95 Th +5% custom FW = 30,000 Th

• All expenses: $125.3k/month
• Average difficulty in Q1 2022: 26.7T
• Average BTC earned in Q1 2022: 4.19BTC/month
• Average cost per BTC (pre-tax): $29,904
• Average cost per BTC (after-tax, 24%): $22,727

If the power cost is 4¢ instead of 6¢, the cost per BTC is 9% cheaper. This would make the expenses of a small miner comparable to MARA or RIOT.

I do think Rolf was onto something when he hypothesized that small miners have many advantages.