Bitcoin Miners Seek Billions of Dollars to Fight Energy Problems
Date: 2025-01-07 Author: Gabriel Deangelo Categories: IN WORLD
With energy prices rising and profitability declining after the last halving, Bitcoin miners have been scrambling to find new sources of funding. Companies like Marathon Digital, Riot Platforms, and CleanSpark have raised more than $3.7 billion since November 2024 by issuing convertible bonds with zero or near-zero coupons. Much of the money has been used to buy Bitcoin to shore up reserves as the largest cryptocurrency by market cap has surpassed $100,000.
Marathon CEO Fred Thiel noted that the company’s strategy is to “accumulate as much Bitcoin as possible,” and Marathon currently holds nearly 45,000 BTC, which is valued at over $4.4 billion.
However, miners face significant challenges. Energy prices continue to rise, and Bitcoin’s hash rate has reached an all-time high. In addition, the latest Bitcoin halving cut mining rewards in half, from 6.25 BTC to 3.125 BTC per block.
James Butterfill, head of research at CoinShares, noted that the company has seen “stratospheric growth in Bitcoin’s hash rate,” indicating that new hardware is being added en masse. This makes miners, whose production costs are high, more vulnerable, especially if the price adjusts.
Miners also face competition from AI developers for access to the power grid. Some companies, like Hut 8 and Hive, have begun leasing their data centers to AI firms to offset costs. Others, like Marathon, are expanding into energy-rich countries like Kenya and Paraguay.
