CleanSpark Plans to Acquire 160,000 Miners in Strategic Push to Boost Hash Rate
Summary:
U.S.-based Bitcoin miner, CleanSpark Inc., has entered into a strategic agreement potentially leading to the acquisition of 160,000 miners by the end of 2024. The company purchased 60,000 Bitmain S21 units and may buy an additional 100,000 machines. This move is expected to boost CleanSpark's hash rate to 50 exahashes per second. The firm intends to launch an in-house trading desk in 2024 to maximize returns from its Bitcoin holdings. The company's share price has risen by 385% over the past year.
CleanSpark Inc., a U.S -based Bitcoin (BTC) miner, revealed a strategic partnership that might lead to the acquisition of as many as 160,000 miners before the closure of 2024. On January 8, CleanSpark declared that it bought 60,000 Bitmain S21 units for $193.2 million at a rate of $16.10 per terahash. The delivery is scheduled from April to June 2024. Further, the company has the strategic choice to buy an additional 100,000 machines at $16 per terahash prior to the end of 2024. If all 160,000 miners are deployed, it's predicted that CleanSpark's hash rate will soar to 50 exahashes per second (EH/s), a significant leap from its current 10 EH/s.
Zachary Bradford, CEO of the firm, described the strategic call option as a safeguard against surging machine prices during flourishing markets. According to him, machine costs escalated three to five-fold in the previous bull market, a trend that they anticipate repeating in the foreseeable bull markets. He assured that the company is primed for expansion into the next bull market without the concern of machine price inflation.
Bradford further indicated that the strategic agreement would enable the company to more adeptly manage its capital by managing as many variables as feasible. The agreement also provides them with the flexibility to synchronize their infrastructure growth with macro events while ensuring cost certainty on the miners.
Marathon Digital Holdings, Riot Platforms, and Cipher Mining are also among the companies that have recently increased their machine acquisitions, as they gear up for the upcoming BTC halving event predicted for April.
On the 2nd of January, CleanSpark made public its intentions to establish an internal trading desk in 2024 to amplify returns on its Bitcoin (BTC) holdings. The company announced that it mined 720 BTC in December, which enhanced its BTC holdings to 3,002, presently valued at $140.9 million.
As of January 8, CleanSpark's (CLSK) share price went up 5% to $10.72 and has currently risen by 385% in the past 12 months, as per Google Finance's data.
Published At
1/9/2024 2:44:15 AM
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