OPEX is short for Operating Expenditure. In mining, it refers to costs incurred during the regular operation of mining equipment and infrastructure.

Typical OPEX components include electricity, mining hosting, maintenance, repairs, internet services, personnel, cooling, and other recurring operating expenses.

Why OPEX matters

OPEX is directly related to the current profitability of a mining operation. Even when mining equipment has already been fully paid for, high electricity or maintenance costs can make continued operation economically unattractive under a particular set of assumptions.

OPEX is commonly compared with revenue to determine an operating result. Long-term project analysis may additionally include capital expenditure and depreciation.

The exact composition of OPEX depends on the business model and accounting methodology.