#US mining company buys $3.7 billion in Bitcoin#
Hot Topic Overview
Overview
Recently, US Bitcoin mining companies have been actively raising funds and using them to buy Bitcoin. Since last November, companies like Mara Holdings, Riot Platforms, and CleanSpark have raised over $3.7 billion from investors, primarily through zero-coupon or near-zero-coupon convertible notes. However, with the development of artificial intelligence technology, the best use of the US power grid will face challenges, as AI data centers may demand more electricity than Bitcoin mining. As a result, some mining companies are starting to look overseas. For example, Mara Holdings plans to move half of its mining farms overseas by 2028 and expand in energy-surplus locations like Kenya, the UAE, and Paraguay.
Ace Hot Topic Analysis
Analysis
U.S. Bitcoin mining companies are aggressively 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 capital through zero- or near-zero-interest convertible notes. However, miners face competition from AI developers, as the demand for electricity from AI data centers could surpass that of Bitcoin mining. Core Scientific Chief Development Officer Russell Cann expects that a significant portion of Bitcoin's hashrate will shift outside the U.S. in the coming years. Additionally, Mara Holdings plans to move half of its mining operations overseas by 2028, expanding into energy-surplus locations like Kenya, the UAE, and Paraguay.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
US Bitcoin mining companies are accumulating cryptocurrency holdings to weather tightening profit margins.
Miners are raising capital through zero-interest (or near-zero-interest) convertible notes, which they then use to buy Bitcoin.
The growth in demand for artificial intelligence will negatively impact Bitcoin mining, and a significant portion of Bitcoin's hashrate may shift outside the US in the coming years.
Miners face competition from AI developers, as AI data centers could outpace Bitcoin mining in their demand for electricity from the grid.