Table of Contents:

· Traditional mining companies frequently raise funds and develop new businesses

· A new cycle is coming, and mining companies are preparing to take action

In the past week, 4 US mining companies, including Quantum Blockchain, Marathon Digital, Crusoe Energy, and Bit Digital, have announced financing or launched new businesses. With the recent frequent breakthroughs in BTC prices, Bitcoin mining companies are also collectively preparing for next year's development.

Financing and new business development, traditional mining companies take frequent actions

According to BlockBeats observation, three mining companies, Quantum Blockchain, Marathon Digital, and Crusoe Energy, have made varying degrees of progress in financing, while Bit Digital will add AI computing power leasing business.

On October 31st, Quantum Blockchain, a mining company listed on the London Stock Exchange, completed a £2 million (approximately $2.4 million) financing through new stock offerings. The new funds will be used to advance its research and development plans by increasing recruitment, new hardware, and software development, and may establish cloud service infrastructure in North America.

October 27th, Bitcoin mining company Marathon Digital submitted an S-3 form to the US SEC, planning to raise up to $750 million through a mixed equity offering. Marathon Digital stated: "We may from time to time sell common stock, preferred stock, warrants, or any combination of these securities in one or more offerings, at prices and on terms to be determined at the time of each such offering, for aggregate initial offering proceeds of up to $750 million."

On October 24th, Bitcoin mining company Crusoe Energy announced that it has secured a $200 million asset-backed financing commitment from investment firm Upper90. The funds raised will be specifically used to purchase more GPUs (NVIDIA H100 Tensor Core GPUs) to expand their cloud business. Upper90 is responsible for providing all of the funds for this debt financing, and additional GPU capacity is expected to be provided to customers in the first quarter of 2024.

October 23, according to CoinDesk, Bit Digital, a Bitcoin mining company, will add AI computing power leasing business. The company will purchase 132 FusionOne HPC units from digital infrastructure and service provider xFusion Digital Technologies for about $35 million. Each unit contains Nvidia's HGX H100 8-GPU, totaling 1056 GPUs, and is expected to be delivered by the end of the year. Bit Digital said the new business could bring in up to $250 million in revenue over the next three years.

New cycle is coming, mining enterprises are ready to go

Previously, affected by the market, traditional mining companies have been seeking other ways out during the bear market period.

Related reading: "Bitcoin RWA paradigm shift in a market far exceeding $9 billion".

Now, Core Scientific is facing restructuring, Marathon Digital is struggling to survive by selling Bitcoin and private placements, Riot Platform is once again seeking strategic transformation through renaming (previously known as Riot Blockchain), and Iris Energy is seeking transformation into the generative AI market. Some centralized mining companies are looking for new ways out in the bear market, while others continue to expand their Bitcoin mining market layout, holding on to the darkness before dawn, waiting for the arrival of the bull market.

Recently, mining companies have been active, partly due to their own development factors. According to BTC.com data, the current network has a hash rate of 450.02 EH/s and a difficulty of 62.46 T. Behind Moore's Law (the number of transistors in an integrated circuit doubles approximately every two years, which means upgrading to new ASICs will significantly increase the productivity of bitcoin production), mining companies must constantly purchase better-performing mining machines to maintain their mining business.

Source: BTC.com

On October 26th, BlockBeats reported that Bitmain, a cryptocurrency mining machine manufacturer, released a new T21 Antminer with a hash rate of 190T and an energy efficiency ratio of 19J/T. In addition, Bitmain also launched an optional Bitcoin price downside protection plan, which provides compensation if the Bitcoin price falls below the exercise price during the protection period.

On the other hand, with the recent rebound in BTC prices and the approaching of the fourth Bitcoin halving cycle, traditional mining companies may also be preparing for the development of the next cycle.

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