PANews reported on November 29 that according to Cointelegraph, based on year-to-date data, 16 listed crypto mining companies have spent a total of $3.6 billion on plant, property and equipment (PP&E) upgrades (including new mining hardware). Since 2024, 16 mining companies have raised more than $5 billion in total, with the third quarter being the highest period of PP&E spending since the first quarter of 2022. Mining hardware spending accounts for the majority of PP&E spending. Since 2023, listed mining companies have spent a total of $2 billion on hardware upgrades. The report explained that the service life of crypto mining hardware is usually an average of 3-5 years, and must be upgraded regularly to maintain profitability. In addition, crypto companies are shifting from equity financing to debt financing.
Regarding mining companies’ PP&E expenditures through November 2024, Bitfarms signed a miner hosting agreement with Stronghold on November 1, which includes provisions for hosting an additional 10,000 Bitcoin mining rigs at its facility in Pennsylvania. Around the same time, CleanSpark, a company focused on renewable Bitcoin mining, announced plans to build 400 MW of mining infrastructure following its acquisition of mining company GRIID in October 2024. On November 11, Hive Digital purchased 6,500 application-specific integrated circuits (ASICs) for the company’s upcoming facility in Paraguay.
