CleanSpark Set to Double Hash Rate by 2024 via Key Mining Facility Acquisitions
Summary:
Bitcoin miner, CleanSpark Inc., is set to double its hash rate to 20 EH/s in the first half of 2024, thanks to the acquisition of four new mining facilities. Coupled with its impending Sandersville expansion, the company prepares for the Bitcoin halving event in late April. These strategic moves led to a 12% boost in CleanSpark's shares. However, despite a dramatic rise in shares in 2023, the company has seen a 20% drop in value year-to-date.
CleanSpark Inc., a prominent Bitcoin mining company, anticipates a twofold increase in its hash rate by the initial half of 2024. This surge is expected due to the forthcoming acquisition of four new mining facilities, which are intended to boost production levels before cryptocurrency mining rewards decrease by 50%. The company confirmed on February 6 that three facilities in Mississippi had been secured for $19.8 million, promising an instant production increase of 2.4 exahashes per second (EH/s) once the purchase transaction is closed. Moreover, the company negotiated the acquisition of another mining facility, located in Dalton, Georgia, valued at $6.9 million. This site, still under construction and predicted to be operational by 2024, will generate an additional 0.8 EH/s. Following this agreement, CleanSpark witnessed a 12% surge in its share price.
Supporting the forthcoming inauguration of its Sandersville expansion projected to add 6 EH/s to CleanSpark’s hash rate, the company expects its operational hash rate to soar from 10 EH/s to a minimum of 20 EH/s during the first six months of 2024. These preparations are launched as the Bitcoin halving event approaches, scheduled for late April, which will slash the Bitcoin mining reward from 6.25 BTC to 3.125 BTC. CleanSpark’s CEO, Zach Bradford, expressed that these purchases would enhance operational efficiencies amidst the halving process.
On February 6, CleanSpark’s shares (CLSK) concluded trading at $8.70, demonstrating an over 12% daily increase and slight growth of less than 0.5% post-trading hours, according to Google Finance. Meanwhile, its rivals, Marathon Digital Holdings and Riot Platforms, enjoyed daily share price rises of 2.5% and 4.5% correspondingly. CleanSpark's shares soared by a whopping 440% throughout 2023. However, with the outset of 2024, the company faced a price correction, which led to a 20% drop in its value year-to-date.
Published At
2/7/2024 3:18:38 AM
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