Bitcoin miners invest $3.6 billion in 2024 for upgrades

Bitcoin (CRYPTO:BTC) miners have collectively invested over $3.6 billion in infrastructure, equipment, and data centers throughout 2024, nearing record quarterly spending levels last seen in early 2022.  

According to TheMinerMag, the sector’s spending on property, plant, and equipment (PPE) from July to September 2024 reached $1.226 billion, just $20 million shy of the Q1 2022 record of $1.246 billion.  

CleanSpark, a Nevada-based mining company, has yet to release its financial report, and analysts suggest its inclusion could push the industry to a new quarterly high.  

The total PPE expenditure for 2024 significantly exceeds the $2.6 billion spent in 2022, underscoring the industry’s focus on scaling operations.  

Hardware purchases dominated the spending, with companies committing over $2 billion between July 2023 and March 2024 to procure new mining machines.  

Deliveries began in September 2024, with Bitmain, a Chinese mining hardware provider, handling most of the orders.  

The increased investments coincide with the Bitcoin network’s rising hashrate, which reached nearly 790 exahashes per second (EH/s), and an all-time high mining difficulty of 101.6 T recorded on November 5.  

These metrics emphasise the need for enhanced efficiency and scale in mining operations to maintain profitability.  

However, geopolitical tensions have raised concerns within the industry.  

Reports suggest potential sanctions violations involving Sophgo, a Chinese chip maker associated with Bitmain’s co-founder.  

If verified, these allegations could disrupt the supply chain for U.S.-based miners, posing risks to the multi-billion-dollar sector.  

At the time of reporting, the Bitcoin (BTC) price was $98,077.90.