Bitcoin miners in the U.S. are accumulating cryptocurrency to cope with narrow profit margins and increasing competition for resources, according to a report from the Financial Times.
Companies like Marathon Digital, Riot Platforms, and CleanSpark have raised over $3.7 billion since November 2024 by issuing zero- or near-zero-coupon convertible bonds, leveraging Bitcoin’s price surge to expand their reserves. The price of Bitcoin recently surpassed $100,000, fueling these investments.
Fred Thiel, CEO of Marathon, emphasized the company’s strategy of accumulating as much Bitcoin as possible, with the firm holding nearly 45,000 BTC, valued at over $4.4 billion. As U.S. Bitcoin miners compete to validate transactions and secure the network, the cost to mine a single Bitcoin has risen significantly. In the third quarter of 2024, it cost U.S. miners an average of $55,950 to produce one Bitcoin, a 13% increase from the previous quarter.
Bitcoin mining is facing significant challenges despite its rising value. The increasing hash rate drives up the computing power needed, potentially reducing profitability, while energy costs are rising and competition from AI companies strains energy resources. Some miners are diversifying their strategies to adapt, including leasing data centre space to AI firms and expanding internationally. For instance, Marathon plans to relocate half of its mining operations overseas by 2028, focusing on energy-rich countries like Kenya, the UAE, and Paraguay.
In another development, CleanSpark Inc., a North American Bitcoin mining company, mined 668 Bitcoin in December 2024, bringing its total reserves to 9,952 BTC. For the full year, the company mined 7,024 Bitcoin, reflecting significant growth in operational capacity. Its hashrate surged to 39.1 exahashes per second (EH/s), an increase from its previous peak of 27.6 EH/s in September. Additionally, CleanSpark improved energy efficiency, reducing energy consumption to 17.59 joules per terahash. During the same period, it sold 12.65 Bitcoin at an average price of $101,246 each.
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