Equity financing is warming up, finally
Large miners raised $430M+ in Q2, a 60% increase QoQ
Ten public bitcoin mining companies have released Q2 earnings as of Monday. Based on data compiled by TheMinerMag, equity financing appears to be getting warm again.
Bitfarms, Cipher, CleanSpark, HIVE, Marathon, Riot, Stronghold and Terawulf collectively raised over $430 million in Q2 through stock offerings, which was 60% more than what they raised in the previous quarter. Core and Hut8 didn’t raise equities but Hut8 was the only one that generated positive net cashflows from debt financing. For context, these companies account for 16.8% of the market share of bitcoin production.
Bolstering the trend, Cipher and Riot announced stock offering agreements with various agents over the past week that could see total proceeds of up to $1 billion. Bitdeer also reached a stock sales agreement with B. Riley’s investment arm to raise up to $150 million.
Warning: Dilution ongoing and incoming!
The rise of equity financing coincided with the strong performance of most mining stocks, which had significantly outgrown that of bitcoin itself over the first half of the year.
Meanwhile, the net spending on property, plant and equipment (PP&E) saw a notable increase to more than $260 million, suggesting large mining companies are poised to ramp up infrastructure further ahead of bitcoin’s halving next year.
For a breakdown by each company and more information, refer to TheMinerMag’s Data page.
Other interesting bits in mining worth highlighting over the past week:
Bitmain Expected to Take Equity in Core Scientific as Part of Bankruptcy Plan
Galaxy Digital Reported Negative Nominal Mining Costs in Q2
Regulation News
Texas Offers New Tax Benefit to Attract Bitcoin Miners - Bloomberg Tax
Arkansas Legislative Committees Decline Interim Study on Repealing Crypto Law - Northwest Arkansas Democrat-Gazette
Kentucky Utility Regulators Approve Discounted Power for $25M Cryptomining Facility - WKU Public Radio
Residents Regret Welcoming Bitcoin Miners in North Tonawanda - Buffalo News
Hardware and Infrastructure News
TSMC to Make Cutting-Edge 2-Nm Chips at New Plant in Southern Taiwan - Nikkei Asia
Bitdeer Completes Mining Facility in Bhutan, Gets New Rigs To Boost Capacity - The Block
Oman Attracts $370MLN Investment in New Data Hosting, Crypto Mining Centre - ZAWYA
Hut8 Eyes Potential Acquisition of Certain Assets of Validus Power Corp - Link
Financial News
Riot Posts Mixed Q2 Earnings Report, Sees Growing Consolidation in Industry - CoinDesk
CleanSpark reports Q3 earnings, 16 EH/s is on the horizon - Blockworks
Galaxy Reports $46 Million Loss Despite Bitcoin Mining Growth: Q2 Earnings Recap - The Block
Marathon's Quarterly Loss Narrows, Revenue Jumps - Bloomberg
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