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 Concerns
A 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 Discontent
Much 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 Gaps
The 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 Vesting
However, 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 mined
Incorporating capital efficiency measures, such as return on invested capital
Strengthening 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.
