Equity financing is on the rise
Meanwhile, major public miners continue to reduce debts
It has been a while since we saw multiple equity funding news being announced among private bitcoin mining operations within a week.
Last week, mining data center Soluna raised $12 million in equity and $2 million in debt to fund its project in Texas. Cormint announced the close of $30 million in Series A to fund the growth also in Texas, in addition to a loan of 400 BTC. Marathon-backed startup Auradine announced the raise of $81 million in equity, although about $35 million of that came from Marathon’s investment last year.
There appears to be a similar trend in the public market for listed bitcoin mining operations. Based on newly released quarterly filings of 11 major operations, the proceeds generated from equity financing activities rose in Q1 to $277 million. Meanwhile, their aggregated cash flows from debt financing activities (net of repayments) went further down to -$80 million as they reduced liabilities.
It’d be interesting to see if debt financing will start to pick up again in Q2 and Q3. Some of the aforementioned private operations already took some loans in addition to the equity raise. For public miners, at least Applied Digital announced last week a loan agreement of up to $50 million at an interest rate of 9% to expand the AI computing business. Applied Digital’s stock has more than doubled after it announced several rounds of AI-related news since May 15.
P.S. It was a busy week in Miami, so this issue is delayed. Sorry for the wait!
Hardware & Infrastructure News
MicroBT Releases New Line Of WhatsMiner M50 Series At Bitcoin 2023 - Bitcoin Magazine
U.S. Bitcoin Corp to Host 150K Crypto Mining Rigs - CoinDesk
Corporate News
Bit Digital Adds Machines in Iceland Before Possible U.S. Tax Crackdown - WSJ
Bitfarms Accelerates 6 EH/s Hashrate Target As Quarterly Loss Per Share Narrows - CoinDesk
Bitdeer Reports 552 BTC in Q1’23 Self-mining Production - Link
Sustainable Bitcoin Protocol Welcomes Former Argo CEO Peter Wall as New Senior Advisor - Link
Financing News
Bitcoin Miner Cormint Raises $30M Series A to Build Texas Data Center - CoinDesk
Mining Data Center Soluna Stock Surges After $14M Investment Deal - CoinDesk
Bitcoin Miner Marathon Digital-Linked Startup Auradine Raises $81M - CoinDesk
Applied Digital Announces New $50 Million Loan to Accelerate Growth - Link
Stronghold Digital Mining Announces Reverse Stock Split - link
Feature
Crypto Miners Pivoting to AI Cloud Services May Face an Uphill Battle - Bloomberg
Bhutan Turns to Crypto in Search of Fast Growth - FT
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