Bitcoin miners' debts have increased by 500%. Miners are intensifying their competition for higher

As Bitcoin enters an era of highly competitive mining, VanEck analysts Nathan Frankovitz and Matthew Sigel warn that miners who fail to continuously upgrade their equipment risk being left behind. They point out that the competition for processing power is becoming increasingly fierce, and those who fall behind will see their share of the global computing power gradually decrease, leading to a reduction in Bitcoin block rewards. Data shows that with the widespread deployment of new, more efficient mining machines, the profit margins of mining are being redefined by technological advancements. This “computing arms race” isn’t just about hardware; it also tests miners’ ability to invest wisely, manage efficiency effectively, and make strategic decisions.

Investment giant VanEck states that, to meet the demands of artificial intelligence and Bitcoin production, Bitcoin miners’ debt has increased from $2.1 billion to $12.7 billion in just 12 months.

If miners don’t continue investing in the latest mining machines, their share of the global hash rate will decline, resulting in a reduction in the amount of Bitcoin they can earn daily. This was stated by VanEck analyst Nathan Frankovitz and digital asset research director Matthew Sigel in their October Bitcoin ChainCheck report.

We call this dynamic the “ice melting problem.” Historically, mining companies have relied on stock markets rather than debt to cover these high capital expenses.

“这是因为矿工的收入难以承保，因为他们几乎完全依赖于比特币的价格，而比特币的价格具有投机性。重要的是，股权往往是一种比债务更昂贵的资本形式，”Frankovitz 和 Sigel 补充道。

过去 12 个月，比特币矿工的债务从 21 亿美元增至 127 亿美元。来源： VanEck

行业出版物《矿业杂志》 估计， 15 家上市矿业公司的债务和可转换票据发行总额在 2024 年第四季度为 46 亿美元，2025 年初为 2 亿美元，2025 年第二季度为 15 亿美元。

加密货币矿工进军人工智能领域

在 2024 年 4 月减半将挖矿奖励削减至 3.125 比特币之后，越来越多的比特币矿工开始将能源容量转向人工智能和 HPC 托管服务，以实现收入来源多元化，从而损害了整体盈利能力。

弗兰科维茨和西格尔表示：“通过这样做，矿工们获得了由多年期合同支持的更可预测的现金流。”

“这些现金流的相对可预测性使矿工能够进入债务市场，从而将其收入从比特币的投机性和周期性价格中分散出来，并降低其总体资本成本。”

10 月份，Bitfarms 完成了价值 5.88 亿美元的可转换票据发行，所得款项将用于北美 HPC 和 AI 基础设施建设。

Another mining company, TeraWulf, also announced the issuance of $3.2 billion in senior secured bonds, with the funds intended to support the expansion of its data center located in Lake Mariner, New York.

Source: TeraWulf

Meanwhile, IREN completed a $1 billion issue of convertible bonds in October, with part of the funds allocated for general corporate purposes and working capital purposes.

Artificial intelligence will not pose a threat to the Bitcoin network

Miners are the backbone of the Bitcoin network. They verify all Bitcoin transactions and record them in new blocks. The more miners participate, the higher the hash rate, which helps to ensure the security of the network.

Frankovitz and Sigel said that shifting focus from miners to artificial intelligence and high-performance computing hosting will not threaten the network’s hash rate, as “the prioritization given to artificial intelligence over electricity is actually beneficial for Bitcoin.”

They stated, “Bitcoin mining remains a simple way to monetize excess power in remote or developing energy markets. This can effectively support the development of data centers designed with artificial intelligence and high-performance computing in mind.”

“Moreover, according to human activity, there are cyclical demands for artificial intelligence-based reasoning throughout the day.”

Miners are working hard to reduce costs

Meanwhile, several miners who were interviewed by the journalists for their report revealed that they are exploring ways to monetize excess power capacity when the demand for artificial intelligence services decreases.

FrancoVitz and Siegel said that this could allow miners to offset or even eliminate the need for expensive backup power sources, such as diesel generators.

“Although this is still in its conceptual stage, we believe it represents a logical next step in the collaboration between Bitcoin and artificial intelligence, thereby improving the efficiency of the use of financial and power resources.”