Bitcoin mining companies are turning to billions of dollars in new financing as rising energy prices squeeze profits.

In the face of rising energy costs, Bitcoin (Bitcoin) US miners are building war chests worth billions as competition for resources intensifies and profitability after Bitcoin's recent halving remains under pressure, the Financial Times reports. Reports.

Companies like Digital Marathon, Riot padsAnd CleanSpark has raised more than $3.7 billion since November 2024 through convertible notes with a zero or near zero coupon. A lot of money was spent buying Bitcoin to boost reserves as the largest cryptocurrency by market cap crossed the $100,000 mark.

Marathon CEO Fred Thiel said their business strategy is to "accumulate as much Bitcoin as possible, with the company now holding approximately 45,000 Bitcoins, worth more than $4.4 billion."

However, miners still face some significant challenges. Energy costs continue to rise, and Bitcoin hashrate is at an all-time high. Furthermore, the recent Bitcoin halving has cut mining rewards in half, falling from 6.25 BTC to just 3.125 BTC per block.

James Butterville, head of research at CoinShares, says the company is seeing “a massive spike in Bitcoin hashrate, highlighting the huge amount of new hardware coming online, making those at the higher end of the production cost even more vulnerable, if we see a correction.” Prices."

Miners are also competing with AI developers for access to the power grid. Some companies, such as Hut 8 and Hive, are focusing on leasing their data centers to AI companies to offset costs, the report said. Other companies, such as Marathon, are expanding their operations to countries with surplus capacity, such as Kenya and Paraguay.