Debt remains a powerful lever for operational scale, yet careful attention must be paid to the underlying terms and risk parameters—a focus that will be further developed in the second installment of this series. The experience of the 2022 deleveraging cycle underscores the importance of prudent leverage strategies, particularly in volatile, asset-dependent industries like Bitcoin mining.

Since that period, ASIC-backed loans have largely receded, giving way to Bitcoin-backed lending, which offers greater flexibility and price transparency for borrowers, especially in a rising market environment where Bitcoin serves as a liquid and appreciating collateral. Meanwhile, hashrate-backed financing—which involves pledging future mining output as security—continues to exist as a niche product, though often at a premium cost compared to more conventional collateral structures. These developments signal a broader evolution in mining finance, as firms increasingly seek to align capital structures with risk-adjusted return profiles and market cycles.