Miner Weekly: Bitcoin Mining Debt Set for New Records — But This Time It’s Different
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After a short period of cooldown earlier this year, Bitcoin miners are back in the debt markets — this time in force.
The combined debt and convertible-note offerings from 15 public miners hit a record $4.6 billion in Q4 2024, briefly reduced to under $200 million in early 2025, and has since roared back to $1.5 billion in Q2.
Although their Q3 numbers are still pending, Cipher, MARA, and TeraWulf alone raised around $3 billion through convertible bonds last quarter. Additional credit lines from Bitfarms, CleanSpark, and Soluna add to the total. The combined debt financing of public mining companies may set a new record in Q3.
Now, heading into Q4, the sector’s debt appetite is accelerating again. TeraWulf is planning a $3.2 billion private placement of senior secured notes — the largest single offering ever by a public miner. The same week, IREN closed the offering of $1 billion convertible bonds, and Bitfarms is proposing $300 million in convertible notes.
Taken together, the sector has already matched the total financing raised during the last bull cycle — but the structure and intent this time look fundamentally different.
From ASICs to AI: A Different Kind of Leverage
In the 2021 cycle, only MARA and Core Scientific were notable ones issuing convertible bonds—and Core’s paper carried ~10% interest, a heavy burden that preceded its Chapter 11 filing in 2022. Most other miners—Argo, Greenidge, IREN, Bitfarms, Stronghold, and Core itself, etc. —leaned on loans secured by bitcoin, hardware or data center infrastructure. When hashprice collapsed, lenders seized machines and sites, triggering a cascade of distress.
This time, the center of gravity has shifted:
- More convertibles, fewer ASIC liens. Issuers are opting for equity-linked paper (mostly zero-coupon), reducing forced-liquidation risk tied to machine collateral.
- Proceeds for AI/HPC buildouts. Capital is earmarked for GPU hosting, AI clouds, and power-dense data centers, not just ASIC purchases.
- Broader buyer base. The pitch resonates with infra- and credit investors seeking exposure to energy-backed compute, not only BTC beta.
Leverage Meets the Zetahash Era
The renewed borrowing coincides with the network’s first 1.03 ZH/s month and a hashprice dip sub-$47/PH/s. With margins tight, growth requires capital—but the collateral thesis has evolved from boxes of miners to long-term power, land, and modular data-center capacity that can monetize across BTC + AI cycles.
Convertibles shift risk from collateral marks to equity dilution and execution: miners must stand up revenue-producing AI/HPC at scale while maintaining BTC optionality. If they deliver, the capital stack is more resilient than 2021’s ASIC-lien model. If not, dilution replaces repossession—but equity holders still bear the brunt.
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Hardware and Infrastructure News
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Corporate News
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- Bitfarms names ex-Lazard banker Jonathan Mir CFO amid AI data-center pivot and 5x stock rally – The Block
- Bitcoin miner MARA quietly removes CTO Ashu Swami from executive team – Blockspace.media
Financial News
- Galaxy raises $460 million in push to transform Texas bitcoin site into AI data hub – The Block
- Bitfarms Converts $300M Macquarie Debt Facility to Fund Panther Creek HPC/AI Campus – TheMinerMag
- TeraWulf Plans Record $3.2B Notes Offering to Fund AI Data Center Expansion – TheMinerMag
- Bitfarms Plans $300 Million Convertible Notes Offering as Bitcoin Miner Financing Wave Builds – TheMinerMag
- Situational Awareness Raises Core Scientific Stake to 9.4% Ahead of CoreWeave Merger Vote – TheMinerMag
Feature
- Bitcoin miners’ power edge makes them key AI infrastructure players, Bernstein says – The Block
- Russian Crypto Miners Relocating to Big Urban Areas – But Face Fresh Challenge – Yahoo Finance
- Bitcoin Mining Stocks Double in Value to $90 Billion as Sector Extends Rally – TheMinerMag
