Public Bitcoin Miners Raise $2 Billion Before Halving

Public Bitcoin miners raise $2B in gross proceeds from equity financing activities, anticipating funding activity to be lower in the second quarter of 2024.

Public Bitcoin mining companies prepared for April’s most recent halving event by bolstering their balance sheets.

Ten of the twelve public miners analyzed by BlocksBridge Consulting raised $2 billion in aggregate proceeds from equity financing activities in anticipation of a profit decline following the halving. During the final quarter of 2023, revenue increased by $1.25 billion for the conglomerate, as mentioned earlier.

Marathon Digital, CleanSpark, and Riot Platforms comprised the firms that secured the most capital in the previous quarter, each contributing 73% of the total funds raised.

Marathon, CleanSpark, and Riot held a combined $1.33 billion in cash and over 32,200 Bitcoin BTC tickers worth over $2.2 billion at the end of March, down $69,668.

During the second quarter of 2024, funding activity is anticipated to decline. As of May 15, BlocksBridge Consulting reports that “less than $500 million in capital had been invested in major publicly traded mining stocks through subscriptions.” The report contains the following:

“The financing activities appear to have cooled down since Q2. […] That said, the number is already higher than Q3 last year.”

Capital is raised through equity financing by selling company shares to investors. This instrument is applicable throughout the corporate lifecycle. An organization that has gone public can issue further shares to procure additional capital from investors.

Typically, Bitcoin mining firms employing this strategy aim to finance operational expenses, technological advancements, and infrastructure improvements, particularly in anticipation of the Bitcoin halving event. This occurrence halved mining rewards approximately every four years. 

The first three months of 2024 elicited varied financial results from miners due to the upward trend in BTC prices and mining expenses. Riot Platforms reported a once-in-a-generation increase of 1,000% in net income to $211.8 million for the same period in the prior year.

Despite Riot failing to meet analyst expectations, strong results were achieved because of increased mining expenses and decreased Bitcoin production.

Core Scientific, which had recently emerged from bankruptcy, disclosed revenue of $179.3 million during the period. The mining revenue generated from digital assets surpassed the mining expenses by $68.4 million, leading to a gross margin of 46%.

In addition to missing the revenue forecasts of Wall Street analysts, Marathon Digital cited equipment failures and inclement weather. Revenues increased by 223 percent annually to $165.2 million, as stated in the company’s earnings report.