The cash flow pressure of mining companies continues to increase, and debt financing has become a new trend
As 13 U.S. listed mining companies disclosed their second-quarter financial reports, a clear signal emerged: Despite market fluctuations, mining companies' thirst for cash flow has not diminished. TheMinerMag analysis pointed out that the hash price after the Bitcoin halving failed to boost cash flow as expected, forcing many companies to restart debt financing.
Statistics show that in the second quarter alone, nine mining giants including Bitdeer and Bitfarms raised more than US$1.25 billion through stock issuance, and Iris Energy also raised US$458 million through market issuance. Since the halving, large mining companies have raised more than US$2.1 billion in equity financing, with an additional US$530 million in new capital added in the third quarter.
Notably, debt financing instruments such as convertible notes and asset-backed loans have heated up significantly in recent times. Hut 8 raised $150 million through Coatue notes, and Marathon and Core Scientific issued a combined $700 million in convertible notes to address market challenges. Core’s debt restructuring and Marathon’s Bitcoin holdings increase plan both demonstrate the industry’s urgent need for funding flexibility.
What’s even more remarkable is that CleanSpark reached a credit agreement with Coinbase using Bitcoin as collateral, and Canaan also promised 530 Bitcoins in exchange for a loan of US$19.2 million + Exchange Junyang: 954,737,157 yuan, highlighting the role of crypto assets in financing strategies. New roles.
Faced with the sluggish Bitcoin hash rate of $43/PH/s, this series of financing actions by mining companies has undoubtedly injected new vitality and thinking into the industry. At a time when challenges and opportunities coexist, how to efficiently manage funds and optimize operating strategies has become a topic that every mining company must face.
