VanEck reports that executive pay at U.S. Bitcoin mining firms has nearly doubled, drawing shareholder scrutiny over weak alignment with long-term value creation.VanEck: Bitcoin Mining Executive Pay Doubles, Shareholders Push Back Over Dilution ConcernsA new report from asset manager VanEck highlights growing shareholder concerns over the rising compensation packages of U.S.-listed Bitcoin mining executives, citing weak links between pay and long-term value creation.According to VanEck’s research, executive compensation at major Bitcoin mining firms nearly doubled year-over-year — from an average of $6.6 million in 2023 to $14.4 million in 2024 — outpacing similar roles in the energy and tech sectors. The report reviewed eight U.S.-listed mining firms: Bit Digital, Cipher Mining, CleanSpark, Core Scientific, Hut 8, MARA Holdings, Riot Platforms, and TeraWulf.Equity Compensation and Shareholder DiscontentMuch of the increase is due to equity-based compensation, which made up 79% of total executive pay in 2023, rising to 89% in 2024. Notably, Riot Platforms CEO Fred Thiel received the largest award — $79.3 million in equity — significantly surpassing peers at MARA Holdings and Core Scientific.Despite the aggressive compensation, shareholder support remains muted, with average approval at just 64%, well below the 90% benchmark for S&P 500 and Russell 3000 companies.“Miner executive pay practices remain aggressive, equity-heavy, and often weakly aligned with shareholder outcomes,” wrote VanEck’s head of digital assets research Matthew Sigel and analyst Nathan Frankovitz.Pay vs. Performance GapsThe report also pointed to disparities in pay-for-performance alignment. While TeraWulf and Core Scientific awarded executive pay equivalent to just 2% of their market cap growth, Riot Platforms’ executive pay represented 73% of its market cap increase — amounting to $230 million in 2024 alone.This isn’t a new concern. In 2022, Riot shareholders rejected the firm’s say-on-pay proposal after disclosing nearly $22 million in CEO compensation. In 2025, three of the eight mining firms faced major shareholder rebukes during executive pay votes, VanEck noted.Positive Developments: Performance-Based VestingHowever, the report also acknowledged improvements. Six of the eight companies now use performance stock units (PSUs) with multi-year vesting, tied to metrics such as total shareholder return or share price targets. Annual say-on-pay votes are also increasingly being adopted to improve transparency and accountability.VanEck recommended further reforms, including:Linking bonuses to cost per coin minedIncorporating capital efficiency measures, such as return on invested capitalStrengthening performance criteria for equity awards with longer vesting periods“As Bitcoin miners mature into large-scale infrastructure operators, their executive compensation programs must evolve as well,” the researchers concluded.VanEck’s findings come amid broader scrutiny of miner financials, especially as profitability fluctuates post-halving and as institutional investors demand stronger governance across the digital asset industry.
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