Bitcoin Miners Raise $2.1B Amid Falling Hashprice

In the wake of Bitcoin’s halving and the resulting drop in hashprice, U.S.-listed Bitcoin mining companies have raised $2.1 billion since Q2, as the need for cash remains critical, according to data from TheMinerMag, 13 public mining firms have reported their Q2 earnings, revealing a significant reliance on both stock offerings and debt financing to maintain operations. The halving, which reduced miners’ rewards, has led to tighter cash flow, forcing companies to explore various financing options, according to Theminermag.

Nine major players, including Bitdeer, Marathon, and Riot, collectively raised $1.25 billion through stock offerings during Q2, with additional equity financing bringing the total to over $1.6 billion for the quarter. Meanwhile, Iris Energy, though yet to disclose its earnings, reportedly raised $458 million through an at-the-market offering, highlighting the continued demand for capital within the industry.

Debt financing is also on the rise. Companies like Marathon and Core Scientific have issued convertible notes totaling $700 million in recent weeks. These moves are seen as necessary amid the ongoing challenges posed by Bitcoin’s low hashprice, currently around $43 per petahash per second (PH/s), even after a slight 4.2% difficulty reduction. The surge in debt financing reflects a shift in strategy as companies seek to manage existing liabilities and secure funds to continue expanding their operations.

Hut 8 notably received $150 million through the Coatue notes without raising additional funds through stock offerings, further emphasizing the diverse approaches mining companies are taking to navigate the post-halving landscape. The Miner Weekly report underscores the increasing financial pressure on Bitcoin miners, as they balance operational costs with the need to remain competitive in a challenging market environment.