American Bitcoin mining companies are actively hoarding cryptocurrencies to cope with intensifying resource competition and tightening profit margins.
On January 7, according to the UK (Financial Times), several mining companies, including Riot Platforms and CleanSpark, have raised over $3.7 billion from investors since last November, mainly to purchase Bitcoin. These companies typically raise funds by issuing zero-interest or low-interest convertible bonds.
This trend is closely related to Trump's election as President of the United States. Trump promised that Bitcoin would be 'mined, minted, and manufactured' in the U.S. However, analysts believe that for many mining companies, accumulating Bitcoin is more about coping with financial pressure from high energy costs. Core Scientific's Chief Development Officer Russell Cann stated:
“The situation is not as simple as just saying everything is fine because Bitcoin prices are rising; there are still complex challenges regarding profitability and grid access.”
According to investment group CoinShares, in the third quarter of last year, the average cost for all publicly listed miners in the U.S. to produce one Bitcoin was $55,950, a 13% increase from the previous quarter. The average cost, including depreciation and stock-based compensation, was $106,000. Bitcoin is currently priced at $101,439.1. This also means that if Bitcoin prices do not rise, it may lead many miners to shut down their machines or go bankrupt.
However, the rise in Bitcoin prices has not alleviated the pressure faced by mining companies. As new competitors enter the market, the total computing power (hash rate) required to secure the network continues to climb, reaching a record high last Friday. This may offset the benefits brought by the rise in Bitcoin prices and further squeeze corporate profits. CoinShares research director James Butterfill warned, 'The hash rate is on a remarkable upward trend, indicating that a large amount of new hardware is coming online. If prices pull back, miners with higher production costs will be even more vulnerable.'
At the same time, American mining companies are facing fierce resource competition domestically. The U.S. Energy Information Administration estimates that Bitcoin mining may have consumed 2.3% of the country's grid energy. It is predicted that energy demand from large miners will increase by 60% by 2025.
A greater challenge comes from large AI developers with more financial resources. Cann predicts that in the coming years, most Bitcoin computing power will shift offshore. Some mining companies are seeking faster routes to profitability, with companies like Hut 8, Core Scientific, and Hive already turning to lease their data center capacity to AI hyperscale enterprises. CleanSpark CEO Zach Bradford said:
“The rise in Bitcoin prices is indeed helpful, but if energy prices soar tomorrow, it will still be a tough day for Bitcoin miners.”