Bitcoin miners raise $5.2 billion as market sentiment improves

Bitcoin (CRYPTO:BTC) miners have been raising substantial capital through convertible notes offerings, signaling growing confidence in the cryptocurrency market.

In November and December 2024, several mining companies have initiated large convertible notes issuances.

Bitdeer raised $360 million, while Marathon Digital, Core Scientific, and Iris Energy collectively raised $1.8 billion.

These efforts come as seven publicly traded BTC miners and data center firms raised $5.2 billion since June 2024, with around 70% of this total raised in the last four weeks.

Riot Platforms recently proposed an additional $500 million in convertible notes, further adding to this capital-raising trend.

According to data compiled by TheMinerMag, this trend reflects increasing institutional interest in bitcoin and growing bullish sentiment in the market.

BlocksBridge Consulting’s founder, Nishant Sharma, noted that this movement signals the early stages of a new crypto bull run.

The funds raised by these firms will be used for various initiatives, such as data center expansion and the development of new mining rigs.

For example, Bitdeer plans to use its capital to expand its data center and manufacture more ASIC-based mining rigs.

The firm’s stock has surged by 86% over the past month, with an additional 27% increase during Friday’s trading session.

In terms of investments, Marathon Digital and Riot Platforms specifically aim to use the capital to purchase more bitcoin.

Marathon currently holds 34,959 BTC, while competitor CleanSpark holds 9,297 BTC.

Meanwhile, MicroStrategy continued to accumulate bitcoin, purchasing 21,550 BTC between December 2 and 8, bringing its total holdings to 423,650 BTC.

Despite the price fluctuations, the positive sentiment surrounding bitcoin mining is expected to persist, as companies position themselves for the potential of a broader market rally.

At the time of reporting, the Bitcoin price was $97,432.35.