CleanSpark Plans to Establish an In-House Trading Desk by 2024 to Boost Bitcoin Earnings
Summary:
CleanSpark Inc., a US-based Bitcoin miner, intends to establish an in-house trading desk by 2024 to enhance earnings from their Bitcoin holdings. CEO Zachary Bradford believes it's financially strategic to manage the company's sizeable Bitcoin assets internally. Expected to capitalize on regulated crypto offerings, the move reflects an industry shift as significant players create their own trading entities. In 2023, CleanSpark's share price witnessed a dramatic increase of around 440%, pulling the firm’s market cap to $2 billion.
CleanSpark Inc., a Bitcoin mining corporation based in the United States, has plans to establish their own trading desk within the company by 2024 in order to profit further from their Bitcoin (BTC) holdings. CEO Zachary Bradford revealed these intentions in a January 2nd Bloomberg report, stating that utilizing the "sizeable Bitcoin” assets of the firm in house would be a sensible and financially viable move. As of the end of November, CleanSpark reportedly held 2,575 BTC, a value estimated at approximately $116 million at the current market rate.
Aiming to expand based on regulated cryptocurrency offerings, CleanSpark's plans include the use of option contracts traded on the Chicago Mercantile Exchange or linked entities. Bradford disclosed that a modest shuffle of assets to separate accounts would be pursued but highlights the importance of maintaining cold storage custody with providers like Coinbase. He emphasized the security of segregated accounts.
A transformation is occurring in the industry with a leading Bitcoin mining company planning to implement an in-house trading desk. This move could significantly affect the market structure within the digital currency business, reflecting its evolution from its modest beginnings to a more structured institution.
Bradford expects a trend with more Bitcoin miners to establish their own trading desks. He believes this approach gives a company the capacity to manage assets according to its risk tolerances and expertise, providing a closer watch on operations. Our attempts to solicit additional comments from CleanSpark remained unanswered.
In related news, CleanSpark's (CLSK) share price surge to nearly $11 in 2023, an impressive 440% increment, hoisting the company's market cap to a hefty $2 billion. The significant share price increase offset a close to 80% drop in share price in 2022 when the total market capitalization of the cryptocurrency industry fell dramatically dropping as low as $832 billion after the FTX severe downturn.
Published At
1/3/2024 5:52:51 AM
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