As competition for resources intensifies, U.S. Bitcoin mining companies are accumulating cryptocurrency funds to help them withstand tightening profit margins. Since November of last year, companies like Mara Holdings, Riot Platforms, and CleanSpark have raised over $3.7 billion from investors, which they then used to purchase Bitcoin. These companies typically raise funds through zero-interest (or near-zero interest) convertible notes.
CoinShares research director James Butterfill stated, "If Bitcoin prices don’t rise, we will see many mining companies start to close or go bankrupt."
Executives noted that a greater challenge comes from large AI developers that have more financial resources than mining companies.
Core Scientific Chief Development Officer Russell Cann stated, "The demand for AI in the U.S. will greatly affect how much Bitcoin mining can increase," predicting that most of Bitcoin's computing power will be outside the U.S. in the coming years.
"This can only be explained mathematically: what is the best use of the power grid, as a Bitcoin mining facility or as an AI data center? And currently, from an economic perspective, AI will be the best use," Cann said.
Additionally, Mara aims to relocate half of its mining operations overseas by 2028 and expand in energy surplus locations such as Kenya, the UAE, and Paraguay. (FT)

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