Major mining firms increase borrowing to fund next-generation machines and expand into AI-driven data infrastructure amid rising capital demands.
Debt among Bitcoin mining companies has surged dramatically from $2.1 billion to $12.7 billion in just one year, according to a recent report from VanEck. The sharp rise underscores the miners’ urgent push to maintain their share of the global hashrate, a key measure of network dominance and block reward generation.
VanEck analysts Nathan Frankovitz and Matthew Sigel warned that miners unable to keep pace with technological upgrades risk losing profitability. “Without continued investment in the latest machines, a miner’s share of the global hashrate deteriorates, resulting in a reduced share of daily Bitcoin rewards,” they explained in the October Bitcoin ChainCheck report.
They described the situation as a “melting ice cube problem,” where outdated equipment rapidly loses efficiency. Historically, miners funded upgrades through equity markets, but rising costs have pushed firms toward debt financing. “Equity tends to be a more expensive form of capital than debt, especially when revenues rely heavily on Bitcoin’s speculative price movements,” the analysts added.
Industry data shows a surge in convertible-note offerings — with 15 public miners raising $4.6 billion in Q4 2024, followed by $1.5 billion in Q2 2025, according to The Miner Mag.
Bitcoin Miners Turn to AI and HPC for Revenue Stability
Following the April 2024 Bitcoin halving, which reduced rewards to 3.125 BTC per block, miners have begun diversifying into Artificial Intelligence (AI) and High-Performance Computing (HPC) services. These sectors provide predictable cash flows through long-term contracts, reducing reliance on volatile crypto prices.
Bitfarms recently raised $588 million for AI infrastructure development in North America, while TeraWulf announced a $3.2 billion secured notes offering for data center expansion at its Lake Mariner facility in New York. Similarly, IREN secured $1 billion in convertible notes to enhance corporate operations and AI infrastructure.
Experts stress that miners’ shift toward AI does not threaten the Bitcoin network. “AI’s demand for power is a net benefit to Bitcoin,” VanEck noted, as it encourages more efficient energy use and data center development.
Many firms are also exploring ways to monetize excess energy capacity during periods of low AI demand, potentially reducing costs tied to backup systems like diesel generators. “This represents a logical next step in the synergy between Bitcoin and AI, improving both financial and electrical efficiency,” the analysts concluded.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.