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Crypto News

CleanSpark Sets Sight on 160K Bitcoin Miners Acquisition by 2025

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

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CleanSpark Inc., a prominent U.S.-based Bitcoin miner, has unveiled a comprehensive plan to boost its mining capabilities significantly. The company recently confirmed the purchase of 60,000 Bitmain S21 mining units, amounting to $193.2 million, at a rate of $16.10 per terahash. These units are slated for delivery between April and June 2024.To bolster its mining operations, CleanSpark also reserves the option to acquire an additional 100,000 mining machines before the end of 2024, priced at $16 per terahash. This ambitious expansion could elevate the company’s hash rate to 50 exahashes per second (EH/s), marking a 400% increase from its current output of 10 EH/s.

A Proactive Approach to Market Fluctuations

Zachary Bradford, CEO of CleanSpark, highlighted the significance of this strategic call option as a safeguard against potential surges in mining equipment prices, often observed during bull markets. Based on previous trends, Bradford noted that machine costs escalated three to five times in the last bull market, anticipating similar patterns in future cycles.Bradford emphasized the advantage of this approach, allowing CleanSpark to scale up efficiently in the next bull market without concerns over rising machine prices. This strategic agreement offers the dual benefits of managing capital effectively while ensuring fixed costs for miners.

Preparation for Bitcoin’s Halving Event

CleanSpark’s strategy aligns with preparations for the anticipated Bitcoin halving event in April, a sentiment echoed by other major players like Marathon Digital Holdings, Riot Platforms, and Cipher Mining, who have also ramped up their mining capacities.In addition to its mining ventures, CleanSpark plans to inaugurate an in-house trading desk in 2024, aiming to optimize returns from its Bitcoin holdings. The company reported mining 720 BTC in December, boosting its total Bitcoin reserves to 3,002, valued at $140.9 million at present rates.

Market Response and Future Outlook

Following the announcement, CleanSpark’s shares witnessed a 5% increase, reaching $10.72 on Jan. 8. The stock has seen a notable 385% surge over the past year. As CleanSpark gears up for future market dynamics, its comprehensive strategy and forward-thinking investments position it as a formidable force in the evolving landscape of crypto mining.