Bitcoin Mining Industry Reports $5 Billion in Funding and Increased Infrastructure Spending

According to its third-quarter results, the cryptocurrency and Bitcoin mining sectors have demonstrated strong financial performance, which is indicative of large fundraising and investment activities. TheMinerMag reports that major sector participants have raised a staggering $5 billion this year through loan and equity financing.

With $4.4 billion raised, including $813 million in the most recent quarter, equity financing accounted for the majority of this total. At $625 million, or 12.5% of the total amount raised, debt financing made up a smaller portion of the capital.

Spending Surge on Infrastructure and Hardware

As mining activities expand, companies have also ramped up spending on infrastructure. Reports revealed that $3.6 billion has been allocated to property, plant, and equipment (PP&E) to support growing operations. The increase in expenditure correlates with the global hashrate—Bitcoin’s computing power—reaching an all-time high of 790 exahashes per second (EH/s).

“Recently hit an all-time high near 790 exahashes per second or 790 EH/s (7-day moving average) despite the Bitcoin halving,” noted TheMinerMag.

To further strengthen their operations, miners have committed to purchasing up to $2 billion worth of hardware between July 2023 and September 2024. ASIC mining tools, essential for efficient Bitcoin mining, remain dominated by Bitmain, which continues to lead the market with significant purchase commitments from major players.