Bitcoin mining is experiencing a debt surge as miners invest heavily in new equipment and technologies like artificial intelligence (AI) and high-performance computing (HPC). The shift aims to stabilize their income streams and compete for greater hashrate dominance. As Bitcoin rewards shrink post-halving, miners are increasingly turning to debt financing to keep pace with industry competition. A recent report from VanEck shows a dramatic increase in mining debt: it has jumped from $2.1 billion to $12.7 billion in just twelve months, highlighting the financial pressure on miners. This surge is driven by the need for increased efficiency and profitability as competition intensifies. 2024’s halving event further accelerated this trend, prompting miners to diversify their operations into AI-driven data centers to generate more stable income.