Core Insights - The surge in share prices for AI and HPC companies since September has significantly benefited bitcoin miners diversifying into these sectors, although this growth entails increased financial risks [1][3]. Debt Market Activity - Bitcoin miners are increasingly engaging in debt markets to finance their expansions into AI and HPC, with combined debt and convertible note offerings reaching an estimated $6 billion in Q3 [2][3]. - Companies like TerraWulf, MARA Holdings, and Cipher raised billions through convertible bonds, while CleanSpark utilized credit lines to strengthen their financial positions [3]. Recent Fundraising Efforts - In Q4, TerraWulf initiated a $3.2 billion private placement of senior secured notes, marking it as the largest single offering by a public miner [4]. - IREN issued a $1 billion convertible bond, and Bitfarms announced a $300 million convertible note shortly after [4]. Financial Implications - Some debt instruments, such as IREN's zero-coupon bonds, differ in structure, while TerraWulf's issuance carries a 7.75% coupon, leading to an annual interest expense of approximately $250 million, which exceeds its projected 2024 revenue of $140 million [5]. Market Dynamics - The current fundraising cycle is characterized by a shift towards AI and HPC, which may mitigate risks compared to previous cycles where miners faced severe financial distress [6]. - The market is rewarding miners transitioning from traditional bitcoin operations to AI/HPC, with the CoinShares Bitcoin Mining ETF up 160% year-to-date, indicating a positive investor sentiment towards this pivot [7].