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Key Takeaways
- Bitcoin mining CEOs are earning record-high compensation, largely through equity awards, drawing criticism from investors.
- Approval ratings for executive pay packages in the mining sector are significantly lower than market averages.
- VanEck urges stronger performance alignment, cost-based metrics, and enhanced accountability as the industry matures.
U.S.-listed Bitcoin mining companies are drawing shareholder ire over excessive executive compensation packages, which far outpace those in traditional energy and tech sectors. A new report from asset manager VanEck highlights rising tensions over equity-heavy payouts and poor alignment with shareholder value creation.
Executive Pay Surges While Shareholder Approval Drops
According to VanEck’s head of digital assets research Matthew Sigel and analyst Nathan Frankovitz, executive compensation in the U.S. Bitcoin mining sector has nearly doubled—rising from $6.6 million in 2023 to $14.4 million in 2024. Despite this surge, shareholder approval for pay packages remains low, averaging just 64% versus the 90% norm seen in S&P 500 and Russell 3000 companies.
The report warns that these “aggressive compensation packages” are often not tied to long-term performance, with many executives continuing to grant themselves generous equity awards that dilute shareholder value.
Riot Platforms Tops the Charts in Equity Grants
Equity-based compensation has become the dominant form of pay in the mining sector, comprising 89% of total executive remuneration in 2024. Riot Platforms CEO Fred Thiel stands out with a $79.3 million equity award this year—nearly double the compensation of peers at MARA Holdings and Core Scientific.
This concentration of wealth has reignited shareholder scrutiny. In fact, Riot shareholders rejected the company’s say-on-pay proposal back in 2022, and similar “striking rebukes” have been recorded in 2025 for three of the eight miners studied, including Bit Digital, Cipher Mining, and TeraWulf.
Disparities in Pay-for-Performance Ratios
The VanEck report also highlights dramatic differences in how much of a company’s market cap growth goes to executive pay. While TeraWulf and Core Scientific limited executive payouts to just 2% of market cap increases, Riot Platforms allocated a staggering 73%, totaling $230 million in 2024.
Also Read: Bitcoin Shorts Crushed: $1 Billion Liquidated as BTC Hits $117,813 All-Time High
Such disparities underscore a broader concern that executive compensation across the mining industry lacks alignment with shareholder returns and long-term sustainability.
Despite criticism, the report acknowledged some positive steps. Six of the eight miners have implemented performance stock units (PSUs) with multi-year vesting schedules tied to share price targets or relative shareholder returns. This move signals growing acceptance of performance-linked incentives.
VanEck recommends that Bitcoin miners go further by tying executive bonuses to cost per coin mined, enhancing capital efficiency metrics, and applying more stringent multi-year vesting conditions to equity awards.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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