ChainCatcher news, according to Cointelegraph, based on year-to-date data, 16 listed crypto mining companies have spent a total of $3.6 billion on plant, property and equipment (PP&E) upgrades (including new mining hardware). So far in 2024, 16 mining companies have raised more than $5 billion in total, with the third quarter being the highest period of PP&E spending since the first quarter of 2022. Mining hardware spending accounts for the majority of PP&E spending. Since 2023, listed mining companies have spent a total of $2 billion on hardware upgrades. The report explains that the service life of crypto mining hardware is typically an average of 3-5 years, and must be upgraded regularly to maintain profitability. In addition, crypto companies are shifting from equity financing to debt financing.
Regarding mining companies’ PP&E spending in November 2024, Bitfarms signed a miner hosting agreement with Stronghold on November 1, which includes provisions to host an additional 10,000 Bitcoin mining rigs at its facility in Pennsylvania. Around the same time, CleanSpark, a company focused on renewable Bitcoin mining, announced plans to build 400 MW of mining infrastructure following its acquisition of mining company GRIID in October 2024. On November 11, Hive Digital purchased 6,500 application-specific integrated circuits (ASICs) for the company’s upcoming facility in Paraguay.
