Bitcoin mining companies have allocated a significant portion of their funding to upgrading machines and infrastructure, according to a report by theminermag.com. In 2024, a total of 16 publicly traded bitcoin mining companies raised over $5 billion. The report also highlighted that the third quarter of 2024 saw the highest expenditure on property, plant, and equipment (PP&E) since the first quarter of 2022, with more than $3.6 billion invested in mining upgrades.
Most of the PP&E spending was dedicated to improving mining hardware, including the acquisition of new mining sites and technology. This ongoing investment aligns with the increasing hashrate of the Bitcoin network, which measures the computing power utilized for BTC mining worldwide. Despite the halving of bitcoin earlier this year, the hashrate recently reached a record high of approximately 790 exahashes per second (EH/s).
On the other hand, the fundraising through stock issuance by mining businesses slowed down in the third quarter, with only $813 million raised compared to $1.6 billion in the second quarter. However, debt finance made a comeback, as mining businesses raised $500 million through debt issuance, marking the highest since the first quarter of 2022.
An example of mining companies shifting from equity financing to debt financing is MARA Holdings’ recent issuance of $1 billion in 0% convertible senior notes, which was used to finance the purchase of 5,771 bitcoins. Additionally, a notable trend in 2024 is the increasing focus on sustainable mining practices, as miners strive to balance profitability with environmental responsibility.
