The total debt of companies engaged in Bitcoin mining has increased more than sixfold over the past 12 months, reaching $12.7 billion. This significant jump is attributed to large investments in the development of infrastructure for artificial intelligence and the modernization of cryptocurrency mining equipment.
This is reported by Finway
Reasons for the Sharp Increase in Miners’ Debt
Experts emphasize that the rise in miners’ debt is driven by the need to remain competitive amid the rapid increase in hash rate and the active development of AI-based technologies. Previously, the industry relied primarily on equity capital; however, due to its high cost and volatility, more companies are opting for debt financing, which helps maintain cash flow stability.
Analysts compare the situation to the “melting ice cube problem”: without continuous investments, companies lose market share in global hash rate, along with a portion of daily rewards.
Diversification of Business and the Impact of AI
According to reports, starting from the end of 2024, public Bitcoin miners have issued debt and convertible bonds totaling approximately $6.3 billion, of which $4.6 billion was raised in the fourth quarter of last year alone. This coincided with a trend toward business diversification: after the 2024 halving, many miners began using their capacities for hosting artificial intelligence and high-performance computing (HPC). This practice generates more predictable revenues and simplifies access to credit resources.
Among notable examples is Bitfarms, which issued convertible bonds worth $588 million in October, while TeraWulf raised $3.2 billion through secured bonds to expand the Lake Mariner data center. IREN secured $1 billion to finance corporate needs and replenish working capital.
Analysts note that while some of the miners’ capacities are being redirected in favor of AI, this does not jeopardize the security of the Bitcoin network. On the contrary, a hybrid model, where excess electricity is used for both mining and data center operations, enhances the resilience and profitability of the industry.
“Bitcoin mining remains a straightforward way to quickly monetize excess electricity in remote energy markets or in developing markets, effectively subsidizing the development of data centers designed with the capability for conversion to AI and high-performance computing,” they stated.