Mining companies spend $3.6B on equipment upgrades in 2024

Publicly traded cryptocurrency mining companies have spent $3.6 billion on plant, property, and equipment (PPE) upgrades so far in 2024, according to a report from TheMinerMag.

The bulk of this expenditure, totaling $2 billion since 2023, was directed toward upgrading mining hardware, which typically has a lifespan of 3–5 years and requires periodic replacement to maintain profitability.

The report highlights a notable shift among mining firms from equity financing to debt financing.

Marathon Digital (MARA), for example, recently issued a 0% convertible note to acquire 6,474 Bitcoin (CRYPTO:BTC) for its corporate treasury, exemplifying this trend.

Significant investments in mining infrastructure marked November 2024.

Bitfarms signed a hosting agreement with Stronghold, adding capacity for 10,000 mining units in Pennsylvania.

CleanSpark announced plans to construct 400 megawatts of renewable energy-powered mining infrastructure following its acquisition of GRIID in October.

Hive Digital also purchased 6,500 ASIC devices for its Paraguay facility, which is currently under construction.

ASIC chip manufacturer Bitmain faced scrutiny over its alleged ties to Huawei, a company under U.S. sanctions for national security concerns.

Both Bitmain and Xiamen Sophgo, a related chip designer, denied any business relationship with Huawei.

Despite these assurances, a shipment of Bitmain Antminers remains held at U.S. ports, with customs reportedly demanding a $200,000 fee for clearance.

The ongoing geopolitical tensions and potential supply constraints could impact the availability of backordered mining hardware.

With rising investment in mining infrastructure and hardware upgrades, the industry continues to adapt to both technological and regulatory challenges while preparing for future growth.