Capital Raising Strategies in Bitcoin Mining
In the second quarter of the year, two prominent players in the U.S. Bitcoin mining sector, Marathon Digital Holdings (MARA) and Riot Blockchain, adopted notably different strategies for raising capital.
Marathon Digital Holdings (MARA)
MARA significantly escalated its stock issuance, collecting a remarkable $204 million, surpassing the $80 million acquired in the previous quarter. Importantly, it continued its strategy of keeping all mined Bitcoin rather than selling it to support operations.
MARA did not utilize its credit line in Q2 since it had already tapped into $150 million in the first quarter. Shortly after the quarter concluded, the company unveiled a substantial financing strategy by issuing zero-coupon convertible notes valued at $1 billion, set to mature in 2032.
Riot Blockchain
In contrast, Riot opted for a more conservative approach, garnering $51 million from equity compared to $70 million in the first quarter. Riot liquidated nearly all of its Bitcoin production, selling 1,377 out of 1,427 BTC mined during the quarter to cover operating costs.
Riot increased its borrowing environment, raising $251 million in debt in Q2 while having not taken on any debt in the previous quarter. This included a $100 million credit line established with Coinbase in April, which was later expanded to $200 million and has been fully accessed.
Furthermore, Riot initiated an at-the-market offering program in August 2024, aimed at potentially generating up to $750 million, with approximately $238.3 million still available as of June 30, 2025.
Diverging Financial Philosophies
These divergent strategies highlight the differing financial philosophies adopted by the two mining firms. MARA’s commitment to a “100% HODL” policy means it’s using the capital it raises to fund its growth without selling its Bitcoin holdings. In contrast, Riot’s approach is increasingly reliant on a combination of Bitcoin sales and debt financing strategies.
Both companies are effectively navigating the fluctuating landscape of cryptocurrency mining financing.
