In preparation for the April halving, public Bitcoin mining companies strengthened their financial reserves through equity financing.
According to a report by BlocksBridge Consulting, out of 12 analyzed companies, 10 raised a total of $2 billion in gross proceeds in anticipation of a potential decline in profitability.
The top three fundraisers in the previous quarter were Marathon Digital, CleanSpark, and Riot Platforms, who together brought in 73% of the total funds.
As of March, these three companies hold over $1.33 billion in cash and more than 32,200 Bitcoin, valued at over $2.2 billion. However, the trend of significant fundraising may slow down in the second quarter of 2024, with only around $500 million raised as of May 15.
This is still higher than the amount raised in the third quarter of last year, indicating a continued interest in investing in public mining stocks.
Equity financing is a common tool for companies to raise funds by selling shares to investors.
