Originally published on: November 28, 2024
In a groundbreaking move, publicly traded mining companies have collectively spent a whopping $3.6 billion on plant, property, and equipment (PP&E) upgrades in 2024. This investment includes cutting-edge mining hardware, marking a significant step towards technological advancement in the industry.
Reports from TheMinerMag highlight that 16 mining companies have raised over $5 billion this year, with the third quarter seeing the highest amount of PP&E spending since early 2022. The bulk of this spending has been directed towards upgrading mining hardware, with a total of $2 billion invested by public mining companies since 2023.
One notable trend observed by TheMinerMag is the shift towards debt financing among mining companies. MARA, formerly known as Marathon Digital, recently utilized this strategy by offering a 0% convertible note to purchase a significant amount of Bitcoin for its corporate treasury.
In related news, Bitfarms secured a miner hosting agreement with Stronghold to accommodate an additional 10,000 Bitcoin mining units in Pennsylvania. Meanwhile, CleanSpark, an advocate for renewable Bitcoin mining, announced plans to develop 400 megawatts of mining infrastructure post its acquisition of GRIID.
Exciting developments are also taking place at Hive Digital, with the acquisition of 6,500 ASICs for their upcoming facility in Paraguay. However, recent investigations into chip designer Xiamen Sophgo by US officials have raised concerns about potential supply chain disruptions in the future.
Amidst these advancements, the mining industry faces challenges such as electricity thefts and regulatory issues. Stay informed about the latest trends and business strategies in blockchain and crypto by subscribing to our Crypto Biz newsletter. Gain valuable insights to spot financial opportunities and navigate the market with confidence.
