Report: Public Bitcoin Miners Raised Over $2 Billion a Few Weeks Before Halving

Ten Mining Companies Secure $2 Billion in Funding

BlocksBridge Consulting’s latest report shows that ten publicly traded Bitcoin mining companies secured over $2 billion before Bitcoin halving, which took place on April 20th. The crypto research company said in a statement that the funds were meant to protect the miners from a decline in profitability after the halving event.

By comparison, these ten Bitcoin miners managed to raise $1.2 billion in the fourth quarter of last year. Of the $2 billion secured a few weeks ago, Riot Platforms, Marathon Digital, and CleanSpark accounted for 72%. BlocksBridge Consulting reported that the three Bitcoin miners were collectively holding 32,250 BTC and $1.3 billion in cash during the first quarter of this year.

Meanwhile, BlocksBridge Consulting expects low funding activity in the current quarter. The company also reveals that investors have poured less than $250 million into public mining stocks over the past four weeks.

How Public Mining Companies Raise Capital

Miners listed on stock exchanges secure funding through equity financing, which involves the sale of company shares to public investors. When a mining firm goes public, it is allowed to issue extra shares to investors in an effort to raise more capital. The money raised is usually intended to fund technological upgrades and infrastructure and cover operational expenses, especially after Bitcoin halving when miner rewards are deducted by half.

First Quater Financial Results

Public Bitcoin miners recorded varying financial results in the first quarter of 2024 as mining costs and Bitcoin prices skyrocketed. At the start of this month, Riot Platforms announced that it had generated $211 million in net income during the first three months. That figure represented a 1,034% growth from the same period in 2023.

Core Scientific, on the other hand, reported quarterly revenues of $179 million. The mining company, which recently emerged from bankruptcy, said its mining expenses amounted to $68 million, up $15 million from 2023’s last quarter.

Lastly, despite predictions from Wall Street analysts that Marathon Digital would perform poorly in the first quarter due to equipment failures, the mining firm recorded a quarterly net income of $165 million, marking a 220% increase from the previous quarter.