The year 2024 saw a major increase in Bitcoin mining companies’ investment in facilities and equipment. These companies reached a record level by spending a total of $3.6 billion. They also raised more than $5 billion in total funds by borrowing. However, the customs crisis between Bitmain and the US led to disruptions and uncertainties in the supply chain in the sector.
2024 was a year in which publicly traded Bitcoin mining companies broke records in terms of investment in facilities and equipment. According to data from TheMinerMag, these companies spent $3.6 billion throughout the year. In particular, the third quarter of 2024 reached the highest level of spending since the first quarter of 2022. During this period, hardware upgrades accounted for a large portion of the total spending.
Bitcoin mining companies have changed their financing strategies and emphasized debt. As of 2024, 16 companies have raised more than $5 billion in total. Mara, one of the prominent companies, purchased 6,474 BTC by issuing interest-free convertible bonds and strengthened its corporate treasury. Bitfarms planned to host 10,000 new mining devices at its facility in Pennsylvania as a result of its agreement with Stronghold. CleanSpark announced that it will build a new 400-megawatt mining infrastructure by purchasing GRIID. Hive Digital purchased 6,500 ASIC devices for use in its new facility in Paraguay.
On the other hand, ASIC manufacturer Bitmain is on the agenda due to the customs crisis it has with the US. US authorities have begun investigating allegations that Bitmain used Huawei’s sanctioned chips. Although Bitmain and Xiamen Sophgo have denied these allegations, Antminer devices sent by Bitmain to the US were detained by customs and a $200,000 fee was requested. This situation caused disruptions in the supply chain, raising concerns about future supply shortages. Geopolitical tensions between the US and China are further deepening the uncertainty in the Bitcoin and cryptocurrency mining sector.