Bitcoin News Today: Bitcoin Miners Take Bold Steps Toward AI—Will Borrowed Funds Lead to Profits or Risk Financial Collapse?
- Mid-tier Bitcoin miners are restructuring post-2024 halving, pivoting to AI/HPC amid debt surges and declining block rewards. - Argo Blockchain's LSE delisting and 87.5% equity transfer to Growler Mining highlights sector-wide financial distress and aging infrastructure challenges. - $6B+ in debt-funded AI/HPC expansions by public miners (e.g., Bitfarms, TeraWulf) has driven stock gains but raised default risks as interest costs rise. - Institutional bets like Jane Street's 5% stakes in Bitfarms/Hut 8 tr
Mid-level
Argo Blockchain, among the first Bitcoin miners to go public, illustrates the sector’s upheaval. The London-based company revealed it will withdraw from the London Stock Exchange (LSE) as part of a court-led debt reorganization, with its primary lender, Growler Mining LLC, poised to take control of 87.5% of its shares, as detailed in a
The industry at large is reacting by leveraging debt to pivot toward AI and HPC. Publicly listed miners secured more than $4.6 billion in debt and convertible bonds in late 2024, with this trend gaining speed into 2025, according to a
Interest from major institutions has grown, with Wall Street powerhouse Jane Street Capital disclosing 5% ownership stakes in three leading Bitcoin miners: Bitfarms, Cipher Mining, and Hut 8, as reported by
This new direction is yielding short-term benefits. Shares of Bitcoin mining firms have outpaced the cryptocurrency itself, with Bitfarms gaining 131% and Hut 8 rising 211% over the past year, compared to Bitcoin’s 73% increase, CoinCentral reports. Still, experts warn that higher interest expenses and execution risks remain significant obstacles. For example, TerraWulf’s 7.75% interest rate on its $3.2 billion in bonds results in $250 million in annual interest payments—a cost that could pressure profits if demand for AI services declines, according to CoinDesk.
At the same time, the post-halving market continues to challenge the sector’s durability. Bitcoin’s value, which briefly dipped below $105,000 in late October, has since steadied around $110,000, according to
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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