Bitcoin miners scramble for cash as profits dry up and cryptocurrency markets fall
Join Our Telegram channel to stay up to date on breaking news coverage Bitcoin mining companies are increasingly selling equity, one of the least appealing ways to raise funds as profits dry up and borrowing becomes more expensive due to higher interest rates. In July, Core Scientific Inc., one of the largest publicly traded Bitcoin miners in the United States, entered into a $100 million common stock purchase agreement with B. Riley Principal Capital II. Iris Energy Ltd., an Australian miner, announced in September that it had agreed to sell up to $100 million in equity to the same investment bank. Argo Blockchain PLC, based in London, decided earlier this month to issue stock at a discount to an unnamed investor for $27 million. Bitcoin miners have been battered by low Bitcoin prices, rising energy costs, and fierce industry competition. During the crypto bull run, when investors expected Bitcoin prices to rise and publicly traded miners were seen as an efficient way to inve...