Bitcoin miners listed in the U.S. are playing in a different league compared to their privately held or foreign counterparts, thanks to their easier access to funding.
These publicly traded companies have a significant edge because they can tap into the deep capital markets in the U.S., giving them a variety of financial options that others simply don’t have.
According to broker Bernstein, this financial flexibility makes U.S.-listed miners natural consolidators in an industry that thrives on scale and capital-intensive operations.
Bernstein analysts, led by Gautam Chhugani, explained to us that this ability to raise funds through debt and equity in the U.S. gives these miners a leg up, especially as the market heads towards consolidation.
The mining industry is split into two camps: those focused purely on Bitcoin mining and those pivoting towards artificial intelligence (AI) data centers. Both routes are viable, but the name of the game is consolidation.
According to Bernstein, miners like Marathon Digital and Core Scientific are taking different approaches to secure funding, which speaks volumes about where they see the future of the industry.
Marathon recently raised $300 million through convertible notes, with plans to buy more Bitcoin. They’re following the playbook laid out by MicroStrategy, which has made waves in the market by using long-term convertible notes to acquire Bitcoin as a corporate treasury asset.
Marathon’s notes were priced with a 25% premium and a 2.125% coupon, maturing in 2031. On the other hand, Core Scientific went a different route, securing $400 million with a 3% interest rate over five years.
Their goal? Pay off high-cost debt and invest in AI-focused data centers. This is about attracting institutional investors who are increasingly interested in high-performance computing (HPC) strategies.
The “Mullet strategy,” where AI data centers take the lead while Bitcoin mining continues in the background, is becoming more common. But the big question remains: Should all Bitcoin miners make this transition?
Bernstein’s take is that while the interest in AI is strong, the two industries—Bitcoin mining and AI—are fundamentally different. The power specs might be similar, but the business models are not.
Another layer to this discussion is the upcoming U.S. elections, which Bernstein mentioned could have a significant impact on the crypto market.
Polymarket trends are showing a close race between Trump and Kamala. The crypto markets, including Bitcoin, are currently range-bound, and a Republican victory, particularly by Trump, could be seen as bullish for the market.
Bernstein also reiterated its bullishness on Bitcoin, predicting that it could hit new highs of around $200,000 by 2025. Bitcoin was worth $60,707 at press time.
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