"Bitcoin mining industry debt surges sixfold in one year"

Debts of Bitcoin (BTC) mining companies surged from $2.1 billion to $12.7 billion in one year. Large-scale capital expenditure for AI computations and to strengthen mining competitiveness is cited as the cause.

On the 23rd (local time), according to Cointelegraph, VanEck said in its 'October Bitcoin ChainCheck report' "Mining companies face a structural problem wherein failure to secure the latest equipment causes them to fall behind in the global hashrate competition and see reduced mining rewards," and "In the past they mainly raised funds through equity issuance, but recently they have increased debt to invest in equipment.".

The increase in mining companies' debt is clearly evident across the industry. According to industry magazine The Miner Mag, the debt and convertible bond issuance by 15 listed mining companies amounted to $4.6 billion in Q4 2024, $200 million in early 2025, and $1.5 billion in Q2.

An increasing number of miners are diversifying into AI and high-performance computing (HPC). After the Bitcoin mining reward halved to 3.125 BTC in April and profitability worsened, miners have been converting power resources into AI and HPC hosting businesses to secure stable cash flow based on multi-year contracts. The report analyzed that, thanks to predictable cash flows, miners are entering the debt market to lower their cost of capital and reduce reliance on Bitcoin price volatility.

However, VanEck emphasized, "The miners' shift to AI does not threaten the security of the Bitcoin network." It added, "AI infrastructure investment rather increases power efficiency, promoting expansion of mining facilities, and mining—which can quickly monetize excess power—still serves as a key industry driver."