Miner Weekly: Bitcoin Miners Slow Down Shareholder Dilution
This article first appeared in Miner Weekly, BlocksBridge Consulting’s weekly newsletter curating the latest news in bitcoin mining and data analysis from TheEnergyMag. Subscribe to receive in your inbox once a week.
Over the past week, funds managed by BlackRock have updated their filings regarding holdings in several bitcoin mining stocks as of September 30, including CleanSpark, MARA, Hut 8 (NASDAQ: HUT), and Bit Digital (NASDAQ: BTBT).
Overall, BlackRock’s funds have continued to increase their stakes in these mining stocks since December, holding 7.7% of CleanSpark, 15.4% of MARA, 7.4% of Hut 8, and 6.6% of Bit Digital at the end of Q3. The table below tracks changes since the end of 2023.
Notably, BlackRock’s holdings also provide insights into the outstanding shares of these mining companies as of September 30, shedding light on their share issuance activities since early August, when Q2 reports were submitted.
For example, data compiled by TheEnergyMag shows that CleanSpark’s outstanding shares increased by 4.78 million units between August 9 and September 30, likely due to continued at-the-market offerings. However, this was less than half the issuance between July 1 and August 8, when CleanSpark issued 9.92 million shares for net proceeds of approximately $214 million.
MARA and Hut 8’s outstanding shares did not increase materially between early August and the end of Q3, suggesting a slowdown in equity financing.
Bit Digital issued the most shares among the four companies, with an increase of 9.97 million units since August 19. This may be linked to its $46 million HPC data center acquisition announced earlier this month. By comparison, Bit Digital’s outstanding shares grew by 16 million units in Q2 alone and an additional 14 million units in Q1.
Meanwhile, many large-cap Bitcoin mining stocks have seen significant pullbacks over the past three months, despite Bitcoin’s market price remaining relatively flat.
On the other hand, mining companies have increasingly turned to debt financing through convertible notes and Bitcoin-backed loans. Over the summer, Hut 8, Bitdeer, Core Scientific (NASDAQ: CORZ), and MARA raised $1 billion through convertible note issuances to fund expansion, buy Bitcoin, or refinance existing loans at lower interest rates. Terawulf announced a private offering of $350 million in convertible notes just this Wednesday to buy back shares.
Hardware and Infrastructure News
- Bitcoin Miner Revolve Labs Plans $60M AI Data Center in Minnesota – TheEnergyMag
- Bitcoin Difficulty Aims for All-Time High after Hashrate Surge – TheEnergyMag
- Bitmain-Backed BitFuFu to Acquire 80MW Bitcoin Mine in Ethiopia – TheEnergyMag
- CoreWeave Signs Final Option to Total 502 MW in AI Hosting with Core Scientific – TheEnergyMag
Corporate News
- MARA warns AI mirrors 2000s internet boom, firms risk overbuilding infrastructure: Bernstein – The Block
- Northern Data Mulls Selling Bitcoin Mining Unit to Focus on AI – TheEnergyMag
- Ionic Digital Revives IPO Plan with New Auditor, Reports Bitcoin Holding of 2,102 BTC – TheEnergyMag
- PwC Pursues IREN over Bitcoin Miner Debt Dispute in Australia – TheEnergyMag
- DMG Signs MOU with Malahat Nation to Develop Canada’s First Indigenous-Led AI Data Centers – Link
- Bitcoin miners launch ad campaign in swing states to boost crypto-friendly candidates – Fox Business
Financial News
- Cathedra Bitcoin Announces Cancellation of Previously Announced Non-Brokered Offering – Link
- Mining Stocks Outperform Bitcoin But Trail Yearly Peaks – TheEnergyMag
- Terawulf Raises $425M in Convertible Notes, to Buy Back Shares with $118M – TheEnergyMag
Feature
- US Miners Grow Market Share, MARA’s $200m BTC Loan, and Cipher’s 1.5 GW Buy – The Mining Pod
- Bitcoin Miners Take Divergent Paths Six Months After Revenue ‘Halving’ – Bloomberg
- Ethiopia’s Bitcoin Mining Boom – The Mining Pod
- Bitfarms’ Expansion Strategy w/ Ben Gagnon and Alex Brammer – The Mining Pod
- Bitcoin Miners Are Pivoting to AI to Survive. Core Scientific Entered the Race Years Ago – Coindesk
