CleanSpark, a prominent Bitcoin mining company, has recently made a significant investment in expanding its mining operations. According to a press release issued on Thursday, the company has acquired 12,500 bitcoin mining rigs from Bitmain at a cost of $40.5 million. This move comes as part of CleanSpark’s ongoing strategy to capitalize on the opportunities presented by the crypto bear market, although discounts on such assets may be diminishing.
By purchasing these mining machines, CleanSpark aims to augment its computing power, or hashrate, by 1.76 exahash/second (EH/s). This brings the company closer to its year-end goal of reaching a hashrate of 16 EH/s. As of the end of April, CleanSpark’s hashrate stood at 6.7 EH/s, highlighting the significant expansion planned for the remainder of the year.
The initial shipment of 6,000 Bitmain Antminer S19 XP machines is expected to arrive in June, with the remaining units scheduled for delivery in August, as stated in the press release. CleanSpark’s strategy during the crypto bear market has involved acquiring assets from distressed miners, taking advantage of the financial difficulties faced by several major mining firms that have either declared bankruptcy or undergone restructuring. For instance, in April, CleanSpark purchased 45,000 Antminer S19 XPs, effectively doubling its hashrate. Additionally, in February, the company secured 20,000 rigs at a discounted price of 25%.
While the machines were purchased at a rate of $23 per terahash (TH), it is worth noting that the market price for models with an efficiency under 25 J/TH was $23.27/TH as of May 31, according to Luxor Technologies, a mining services firm. However, it should be emphasized that the S19 XPs acquired by CleanSpark possess an even greater efficiency, clocking in at 21.5 J/TH. As a result, it is likely that the market price for these machines exceeds the figure reported by Luxor. Compass Mining, on the other hand, lists the price for this model as $37/TH.
CleanSpark’s recent acquisition of 12,500 Bitmain mining machines underscores the company’s commitment to expanding its presence in the Bitcoin mining industry. By strategically purchasing assets during the bear market and steadily increasing its hashrate, CleanSpark aims to solidify its position as a leading player in the competitive Bitcoin mining landscape.