VanEck: Bitcoin miners' debt increased by a record 500%

The debt of bitcoin mining companies BTC $108,983.00 Mezo Wrapped BTC 1.50% Market capitalization $36.96 million VOL. 24 hours $2.79 billion has increased from $ 2.1 billion to $ 12.7 billion over the past year, according to investment firm VanEck. The reason for this growth was the active expansion of artificial intelligence (AI) and high-performance computing (HPC) capacities, as well as attempts to maintain profitability after the decrease in mining fees. The company’s analysts point out that without hardware upgrades, the share of companies in the global hashrate is declining, which negatively affects profits.

In the Bitcoin ChainCheck report, VanEck analysts Nathan Frankowitz and Matthew Siegel called this trend a «melting ice floe problem.» Historically, miners have financed capital expenditures through the equity market, but now they are increasingly turning to debt instruments. Borrowing has become a cheaper way to raise funds than issuing new shares, which explains the change in financial strategy.

According to The Miner Mag, the total debt and convertible bonds of 15 public mining companies amounted to $ 4.6 billion in the fourth quarter of 2024, $ 200 million in early 2025, and $ 1.5 billion in the second quarter. The largest deals included $ 588 million from Bitfarms for the development of HPC and AI infrastructure in North America, $ 3.2 billion from TeraWulf to expand its data center in New York, and $ 1 billion from IREN for corporate needs.

VanEck analysts note that the reorientation of miners to artificial intelligence does not threaten the Bitcoin network. On the contrary, the development of AI infrastructure contributes to a more stable cash flow and more efficient use of electricity. This allows monetizing excess capacity during periods of low demand for AI services, reducing the cost of backup power.

The growth of debt is not only a sign of financial pressure but also of the transformation of the industry. Mining companies are increasingly transforming into hybrid energy and technology structures, combining cryptocurrency mining with the development of computing power for artificial intelligence.