Public Bitcoin mining companies in the U.S. are increasingly turning to debt financing to sustain operations following the April 2024 Bitcoin halving
According to data from BlocksBridge Consulting, 13 well-known mining companies, including Bitfarms, Riot, Marathon, and Core Scientific, collectively raised $1.25 billion through stock offerings during the second quarter of this year.Â
This shift in funding reflects the industry’s response to the halving, which reduced miner rewards by 50%, lowering payouts from 6.25 BTC to 3.125 BTC per block.
In addition, Iris Energy also raised $458 million during this quarter, bringing the total amount raised by miners to over $1.7 billion. The trend continues into the third quarter, with another $530 million in capital already secured, bringing the overall total to more than $2.2 billion.
On August 14, Core Scientific announced a $400 million private offering of convertible notes for qualified investors. The company plans to use this fund to pay off existing loans and redeem notes due in 2028. Similarly, Marathon Digital also launched a $250 million private offering to fund Bitcoin acquisitions and cover general corporate expenses.
Other mining firms are also finding other ways to secure funding. CleanSpark, for instance, secured loans through Coinbase using Bitcoin as collateral. Meanwhile, Canaan pledged 530 BTC to secure loans worth $19.2 million.
Since the halving, Bitcoin’s price has declined by more than 11.5% according to CoinMarketCap, adding pressure on miners facing tighter profit margins. As a result, companies are seeking new ways to remain competitive.Â
For instance, Core Scientific signed a long-term agreement with AI cloud provider CoreWeave, a deal expected to generate $6.7 billion in revenue over 12 years, signaling a diversification of business operations beyond traditional Bitcoin mining.
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