According to FT, US-based Bitcoin miners have proactively taken steps to secure their future by raising billions to tackle the ongoing crisis
Bitcoin (BTC) miners, particularly those in the US are currently facing a hard time, thanks to rising energy costs and limited resources. Therefore, staying profitable in the business has been a major challenge for a large percentage of these miners. As The Financial Times reports, Bitcoin’s BTC $84 419 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $27.89 B latest halving has also contributed to this pressure, meaning that miners are now left with no option but to seek new ways to stay on the profiting side.
In view of the current situation, FT reports that US Bitcoin miners now appear to have devised a plan that will help them adapt to the realities on the ground. That is by accumulating war chests of Bitcoin worth billions.
US Bitcoin Miners Race to Adapt to Rising Energy Prices and Shrinking Profits
According to FT, US-based Bitcoin miners have proactively taken steps to secure their future by raising billions to tackle the ongoing crisis.
For instance, major players like Mara Holdings, Riot Platforms, and CleanSpark have collectively raised over $3.7 billion since November 2024.
Although these funds were mainly raised through zero or near-zero coupon convertible notes, they are being used to buy Bitcoin and strengthen reserves. More so, since Bitcoin prices recently crossed the $100,000 mark.
Fred Thiel, CEO of Mara Holdings, has hinted at his company’s business model. He said that the firm hopes to “accumulate as much Bitcoin as [we] can”.
As of this publication, the firm now has nearly 45,000 BTC, worth more than $4.4 billion.
Growing Challenges for Miners
Although it seems as though miners might already have a way out of the current mess, many of the challenges that miners face persist.
Energy costs continue to climb, while the Bitcoin hash rate remains at an all-time high. Additionally, Bitcoin’s latest halving reduced mining rewards by half, dropping from 6.25 BTC to just 3.125 BTC per block.
As if that is not enough, competition for energy resources is another growing problem. Artificial intelligence (AI) developers are now looking to access the same power grids, adding to the strain on energy supplies.
Despite the challenges, though, it might be worth noting that the mining industry remains fixated on long-term growth. Hence, the billions in funding and strategic shifts that it is employing to stay in business and maintain its profitability.
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