BTC Miners Adopt Different Strategies for Capital Allocation
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Bitcoin miners are actively raising capital for various initiatives. Bitdeer announced that proceeds from its convertible senior notes offering will fund datacenter expansion and mining rig development. Marathon and Riot Platforms plan to use raised capital to acquire more BTC.
Recent actions by Hut 8 and CleanSpark illustrate differing strategies among BTC miners regarding capital allocation. Hut 8 purchased 990 BTC for $100 million, averaging about $101,710 per coin. In contrast, CleanSpark’s CFO Gary Vecchiarelli indicated the company is avoiding purchases at these prices.
Vecchiarelli emphasized CleanSpark's focus on producing bitcoin at a cost significantly lower than the market price, with a production cost of approximately $36,250 last quarter. The company's growth priority for 2025 is to achieve a hash rate of 50 EH/s while expanding its digital asset management group, which currently manages 9,297 BTC as of November 30.
As Hut 8 increases its BTC holdings, Marathon Digital has also raised its BTC inventory to 44,394 BTC as of December 18, utilizing funds from convertible notes.
Vecchiarelli stated CleanSpark's healthy margins enable it to build its balance sheet sustainably. Hut 8 CEO Asher Genoot clarified that the company views its strategic bitcoin reserve as complementary to its core operating strategy, which focuses on disciplined growth. He noted that the company remains sensitive to extreme valuations when considering BTC purchases.