By Kimberly Crain
In a January 8 update, the renowned Bitcoin miner in the US, CleanSpark Inc., secured a strategic agreement to purchase new mining rigs. In readiness for the upcoming Bitcoin halving CleanSpark revealed plans to purchase around 160,000 by the end of this year.
The report indicated that the Bitcoin miner intends to purchase 60,000 Bitmain version S21 by Q2 of 2024. The mining company stated that CleanSpark will incur roughly $193.2 million to buy the 60,000 Bitmain mining rigs.
Crypto Miners Prepare for Upcoming Bitcoin Halving
The company projects that the newly acquired mining machinery will support the business to optimize its operation. Currently, CleanSpark ranks among the largest Bitcoin miners listed on Nasdaq CLSK.
The desire to boost the returns from Bitcoin mining activities has encouraged CleanSpark to acquire new mining machines. A review of the condition of the purchase agreement demonstrated that CleanSpark will receive the new machinery this year.
The first delivery will be received in April, while the other fleets will be delivered by June 2024. After the delivery, CleanSpark will contemplate acquiring additional mining rigs before the end of this year.
The CleanSpark team anticipates purchasing 100,000 mining machines, generating $16 per terahash in the coming month. The report indicated if CleanSpark’s proposed acquisition for more mining rigs materialized, the Bitcoin miner hash rate would reach 50 exahashes per second (EH/s), a 400% increase from the current hash rate.
An announcement conveyed by the chief executive of CleanSpark, Zachary Bradford, projected that mining machinery prices might increase significantly after the next bull run. Therefore, in preparation for the upcoming bull market, CleanSpark plans to invest in acquiring additional mining rigs before the prices increase.
CleanSpark Acquires More Bitmain S21 Mining Models
A review of the price history of the mining rigs demonstrated that in the previous bull market, the price of the machinery tripled. The CEO expects the price for Bitcoin miners to shoot if the crypto bulls resurface.
In readiness for the 2024 bull market, the CleanSpark team plans to expand its operations with fewer worries concerning the price of the mining machinery. The CEO admitted that the strategic agreement to purchase the proposed 160,000 mining units will enable Bitcoin miners to control cost and effectively manage capital.
The CleanSpark team anticipate expanding its infrastructure growth to address cost-related concerns and other macroeconomic events. Based on the nature of Bitcoin mining, CleanSpark preferred Bitmain S21 models to T21 mining units.
The Bitcoin miner acknowledges that Bitmain S21 mining rigs have excellent commanding capabilities compared to other mining models. Bitmains S21 outperforms other mining machines due to its unique features and mining capabilities.
Benefit of Upcoming Bitcoin Halving
In his report, the CEO confirmed that the CleanSpark team settled for Bitmain S21 models after careful consideration. This implies the Bitmain S21 model perfectly blends well with CleanSpark operations.
The executive confirmed that the latest development aims to expand CleanSpark mining capabilities. He believes the new mining machines will enable CleanSpark to navigate the upcoming Bitcoin halving smoothly and position the firm among the leading publicly traded Bitcoin miners.
Besides acquiring new mining machinery, Bitcoin miners recently revealed plans to establish an in-house trading desk to maximize returns from Bitcoin investments. The proposed CleanSpark in-house trading will allow Bitcoin miners to manage risks effectively and maximize returns generated from crypto mining activities.
The CleanSpark team mined 720 Bitcoins in December, witnessing a month-over-month increase. This increased the CleanSpark Bitcoin holding to around 3,002 BTC, worth $140.9 million.
The CleanSpark latest development mirrors the recent move made by Marathon Digital Holding, Cipher Mining and Riot Holding in readiness for the upcoming Bitcoin halving.
The remarkable efforts made by the miners to maximize production came when crypto miners envisioned that Bitcoin would sustain a strong rally after the approval of the spot crypto exchange-traded funds (ETFs). Analysts project that before the end of this week, BTC will reach $50K.
Editorial credit: rafapress / Shutterstock.com
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