Major Bitcoin miners spent $3.6 billion on infrastructure

by

As a seasoned crypto investor with a keen interest in Bitcoin and its miners, I find myself both impressed and concerned by the latest financial reports from key players in the industry. The sheer amount of funding raised this year – $5 billion, to be precise – is undeniably impressive, especially considering that debt financing accounts for only 12.5% of it.

The leading Bitcoin mining company has disclosed their third-quarter financial statement, which reveals a massive influx and outflow of funds amounting to billions of dollars.

Based on information from TheMinerMag, on November 28th, notable figures within the digital currency and Bitcoin mining sector disclosed their financial statements. So far this year, many publicly listed entities have garnered approximately $5 billion in capital via both equity and debt financing.

As an analyst, I can report that equity financing takes up a substantial share of our funding, amounting to approximately $4.4 billion this year. Notably, we secured $813 million through equity financing during the recent quarter. In contrast, debt financing comprises just 12.5% of our total funding, which translates to roughly $625 million for this year.

Additionally, these businesses disclosed the total investment accumulated in real estate, facilities, and machinery (PP&E) that reached an impressive $3.6 billion. It is worth noting that this infrastructure spending for Bitcoin mining increased significantly following a global uptick in computing power assigned to Bitcoin mining, often referred to as hashrate.

According to TheMinerMag, the mining rate recently reached a record peak of around 790 exahashes per second (790 EH/s), as determined by a 7-day moving average, even after the Bitcoin halving event.

Miners have pledged to spend approximately 2 billion dollars on acquiring necessary equipment from July 2023 to September 2024. It’s worth noting that the market for these ASIC mining tools is largely controlled by Bitmain, which accounts for a substantial chunk of these purchases.

Bitcoin miners faced challenges

Bitcoin miners have significantly impacted the cryptocurrency sector by producing Bitcoin and offering it for sale on the market. Yet, they encounter additional difficulties in terms of their operational and regulatory issues in various nations.

Lately, the United States Customs and Border Protection has held back imported Bitcoin mining machinery, such as the Bitmain Antminer ASIC miner, at the country’s ports following a demand from the Federal Communications Commission.

In response to an energy shortage in the country, the Russian authorities have proposed a ban on Bitcoin mining operations and plan to impose a 15% personal income tax on profitable miners.

Read More

2024-11-29 06:08