Following the April 2024 Bitcoin halving, U.S. public Bitcoin mining companies have increasingly turned to debt financing to maintain their operations. The halving, which slashed miner rewards by 50% from 6.25 BTC to 3.125 BTC per block, has forced companies to adapt to tighter profit margins.
According to BlocksBridge Consulting, 13 major mining firms, including Bitfarms, Riot, Marathon, and Core Scientific, collectively raised $1.25 billion through stock offerings in the second quarter of this year. This marks a significant shift in the industry’s funding strategy in response to the halving’s impact.
Iris Energy was another key player in this funding drive, securing $458 million during the same quarter. By the end of the second quarter, the total amount raised by Bitcoin miners exceeded $1.7 billion. The momentum carried into the third quarter, with an additional $530 million in capital already raised, bringing the overall total to over $2.2 billion.
In a major move on August 14, Core Scientific announced a $400 million private offering of convertible notes aimed at qualified investors. The funds will be used to pay down existing debt and redeem notes due in 2028. Marathon Digital has also followed suit with a $250 million private offering, aimed at funding further Bitcoin acquisitions and covering general corporate expenses.
Other mining firms are also exploring alternative financing avenues. CleanSpark, for instance, has secured loans through Coinbase by using Bitcoin as collateral, while Canaan pledged 530 BTC to back loans worth $19.2 million.
The post-halving environment has been particularly challenging due to Bitcoin’s price decline of more than 11.5% since April, according to CoinMarketCap data. With profit margins under pressure, miners are diversifying their strategies to remain competitive.
One notable example is Core Scientific, which has ventured beyond traditional mining by signing a long-term agreement with AI cloud provider CoreWeave. This deal, expected to generate $6.7 billion in revenue over the next 12 years, reflects the broader trend of Bitcoin mining firms expanding their business models to secure their financial futures.
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