1. Bitcoin miners are raising concerns among investors due to excessive share dilution coinciding with falling Bitcoin prices.
2. Major publicly-traded miners, including Marathon #Digital Holdings and Riot #Blockchain , raised around $440 million through stock sales in Q2 2023, marking a 60% increase from the previous quarter.
3. These companies have collectively raised over $4.9 billion in 2021, assisting the capital-intensive industry during a period of reduced access to debt and #lending markets after Bitcoin's price decline in 2022.
4. The recent decline in Bitcoin's value and subsequent drop in mining stocks are causing worries among investors.
5. Investors like Mark Jeftovic, who holds stakes in Marathon, Hut 8 Mining Corp, and Bitfarms Ltd, have expressed concerns about excessive shareholder dilution.
6. Shareholder dilution is an issue for #investors focused on cash flow and return on invested capital.
7. The situation suggests potential challenges as miners pay off debt and prepare for the upcoming Bitcoin "halving" event in 2024.
8. The #halving event will reduce the token reward received by miners by half, impacting their revenue streams.
9. Concerns over excessive dilution hint at potential future dilution as miners adjust their strategies in preparation for the halving.
10. The combination of share dilution concerns and market challenges is highlighting the complex dynamics at play in the Bitcoin mining industry.
