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Bitcoin Miner Bosses Are Raking in Millions – And Investors Are Furious
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Bitcoin Miner Bosses Are Raking in Millions – And Investors Are Furious
Jul 12, 2025 9:41 PM

Executives at US-listed Bitcoin mining firms are taking home pay packages far larger than their peers in energy and IT.

Equity-heavy compensation structures are driving up totals and drawing increasing shareholder resistance, according to new findings from VanEck.

Miner CEOs Outpace Tech and Energy Peers

Across eight miners that VanEck reviewed Bit Digital, Cipher Mining, CleanSpark, Core Scientific, Hut 8, Marathon Digital, Riot Platforms, and TeraWulf executive pay averaged $14.4 million in 2024. This is more than double the previous years $6.6 million, and significantly above averages in the energy and technology sectors.

Such a surge has occurred even as base salaries for mining executives remain broadly in line with other industries, averaging $474,000 in 2023. The primary driver is the sectors reliance on stock-based compensation, which accounted for 89% of miner executive pay in 2024, compared to lower allocations in comparable sectors.

While stock-based incentives can align management with investors, VanEcks analysis indicates many miners continue to structure these awards with short- to medium-term vesting, limited performance gating, and dilution risks that erode shareholder value.

Shareholders appear to be pushing back. Across broader corporate America, nearly 99% of executive pay proposals passed during the 2024 proxy season, while SP 500 and Russell 3000 companies typically witness 90% or higher support rates. By contrast, Bitcoin miners saw an average support rate of just 64%.

Six of the eight miners, including Riot, Core Scientific, Hut 8, Cipher, TeraWulf, and Marathon, have expanded the use of performance stock units (PSUs). These typically vest over multiple years, tied to share price or total shareholder return benchmarks.

Marathon has transitioned fully to PSUs in 2025, and Cipher now uses a 50/50 split between restricted stock units and PSUs. Core Scientific reintroduced its long-term incentive plan with performance-linked stock after reorganization. These changes indicate a move away from purely time-based vesting and toward longer-term alignment, although not all firms have fully adopted these practices.

CleanSpark, for one, has not implemented PSUs. The same is true for Bit Digital as well. Despite authorizing them, it has yet to issue them according to its latest filings.

Pay-for-Performance Misalignment

The question of whether these pay structures are delivering value remains. VanEcks comparison of total executive pay with each miners 2024 market-cap growth shows stark contrasts.

At TeraWulf and Core Scientific, executive pay amounted to around 2% of the firms market-cap increases. This pointed to relatively efficient pay-for-performance alignment.

On the other hand, Riots executives received $230 million, which is equivalent to 73% of the companys 2024 market-cap gains, while Marathons executive pay was 18% of its market-cap growth.

Such disparities have drawn scrutiny, particularly given Riots history of shareholder pushback on pay proposals and concerns over dilution tied to expanding equity compensation plans.

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