#US mining company buys $3.7 billion in Bitcoin#
Hot Topic Overview
Overview
US Bitcoin mining companies are actively raising funds to buy Bitcoin in response to tightening profit margins. Since last November, companies like Mara Holdings, Riot Platforms, and CleanSpark have raised over $3.7 billion from investors and used those funds to purchase Bitcoin. These companies typically raise funds through zero-coupon or near-zero-coupon convertible notes. However, with the growing demand for artificial intelligence, the best use of the US power grid may no longer be Bitcoin mining but rather AI data centers. As a result, some mining companies are starting to relocate their operations overseas to seek cheaper energy.
Ace Hot Topic Analysis
Analysis
U.S. Bitcoin mining companies are aggressively accumulating cryptocurrency funds to counter tightening profit margins. Since last November, companies like Mara Holdings, Riot Platforms, and CleanSpark have raised over $3.7 billion from investors, which they have used to purchase Bitcoin. These companies typically raise funds through zero-interest or near-zero-interest convertible notes. However, miners face competition from AI developers, as the demand for computing power from AI could surpass Bitcoin mining. Russell Cann, Chief Development Officer of Core Scientific, expects that a significant portion of Bitcoin's hashrate will shift outside the U.S. in the coming years. Additionally, Mara Holdings plans to relocate half of its mining operations overseas by 2028, expanding into energy-surplus regions like Kenya, the UAE, and Paraguay. This indicates that Bitcoin mining companies are actively seeking new growth avenues to address the increasingly competitive environment.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
US Bitcoin mining companies are actively raising funds to buy Bitcoin in response to tightening profit margins.
Mining companies are raising funds through the issuance of zero-coupon convertible notes, among other methods, and using these funds to buy Bitcoin.
The development of artificial intelligence poses a challenge to Bitcoin mining, and Bitcoin hashrate may shift overseas in the coming years.
Mining companies are seeking overseas expansion to reduce costs and gain access to more energy supplies.