Bitcoin Miner Execs Under Fire: VanEck Report Exposes Investor Fury Over Sky-High Pay Packages

Bitcoin mining executives are raking in fortunes while shareholders fume. VanEck's latest analysis reveals a growing rift between C-suite compensation and investor expectations in the volatile crypto sector.

Mining bosses cash in as Bitcoin struggles

While retail traders nurse losses from last quarter's 20% BTC dip, mining CEOs continue awarding themselves eight-figure packages. 'It's the old Wall Street playbook - privatize the gains, socialize the pain,' quips one hedge fund manager.

When will the reckoning come?

With institutional money flooding into spot ETFs, miners face unprecedented scrutiny. The next halving event could separate the lean operators from the corporate fat cats. One thing's certain - in crypto, the house always wins... even when it's supposedly decentralized.

Executive Pay Far Exceeds Industry Norms

According to VanEck’s digital asset research team, led by Matthew Sigel and Nathan Frankovitz, executive compensation among U.S.-listed Bitcoin mining companies is dramatically higher than in comparable industries like IT and energy.

The average pay for a named executive officer (NEO) at a bitcoin mining firm reached $14.4 million in 2024, more than double the $6.6 million average in 2023. Much of this comes from equity-based awards, which comprised 89% of total executive compensation in 2024—up from 79% in 2023.

This pay level is significantly out of step with other sectors. For comparison, executive compensation in energy and tech companies tends to be much lower and more performance-driven.

Shareholder Disapproval on the Rise

Shareholder approval ratings for these pay packages have also dropped sharply. VanEck’s report found that average approval sits at just 64%—well below the 90% average seen in companies listed on the S&P 500 and Russell 3000.

VanEck’s analysts argue that this reflects justified skepticism: “Mining executives continue to grant themselves oversized equity awards that dilute shareholders without reliably linking pay to long-term value creation.”

Riot Platforms Faces Sharpest Criticism

The most notable example is Riot Platforms, whose CEO Fred Thiel received $79.3 million in equity awards in 2024—the highest among all examined firms. This figure is almost twice that of peers at MARA Holdings and Core Scientific, and many times more than other Bitcoin mining executives received.

Furthermore, Riot paid out 73% of its 2024 market cap growth—equivalent to $230 million—to executive officers. In contrast, TeraWulf and CORE Scientific paid only 2% of their respective market cap gains to their executives, suggesting a stark contrast in pay-for-performance alignment.

The report notes that these disparities are not new. Riot’s executive pay practices drew attention as far back as 2022, when shareholders rejected the firm’s proposed pay structure after CEO compensation topped $22 million.

Three Miners Face Shareholder Rebukes

The trend continued into 2025, with three of the eight U.S.-listed miners facing “striking rebukes” on executive pay proposals. VanEck did not specify all three but highlighted growing discontent from shareholders demanding more transparency and stronger links between compensation and actual company performance.

The report reviewed pay data from eight mining companies: Bit Digital, Cipher Mining, Core Scientific, Hut 8, MARA Holdings, Riot Platforms, and TeraWulf.

Positive Steps: Performance-Based Compensation Gains Ground

While criticism is mounting, there are signs that the industry is starting to address shareholder concerns. VanEck notes that six out of eight companies have adopted performance stock units (PSUs)—a FORM of equity compensation tied to measurable goals like share price appreciation or total shareholder return.

PSUs typically include multi-year vesting periods, meaning executives must meet specific targets to receive shares. This approach is seen as a positive development toward aligning executive interests with long-term investor value.

Additionally, most mining companies now hold annual say-on-pay votes, allowing shareholders to directly voice their opinions on compensation practices. This increased accountability is a step forward, though VanEck believes more action is needed.

VanEck Recommends Stronger Incentive Ties

To improve alignment between executive pay and company performance, VanEck suggests Bitcoin mining firms adopt clearer metrics for bonus structures. These could include:

• Cost per coin mined

• Return on invested capital (ROIC)

• Longer vesting periods for equity awards

• Performance thresholds based on operational efficiency

These adjustments WOULD not only reduce the risk of shareholder dilution but also strengthen investor confidence in the firms’ governance practices.

Final Thoughts: The Pressure to Reform Is Growing

As the Bitcoin mining sector matures and becomes more closely scrutinized by investors, corporate governance standards are under the microscope. Excessive compensation—especially when it lacks accountability or performance linkage—is no longer being tolerated by shareholders.

While some firms are responding with structural changes like PSUs and greater transparency, the disparity in pay practices remains a key issue. With investor sentiment shifting and executive pay under tighter scrutiny, Bitcoin miners may be forced to rethink how they reward leadership going forward.