CleanSpark Inc. (NASDAQ: CLSK) improved its Bitcoin mining hashrate by 32 exahashes per second (EH/s) in a bid to launch itself among the upper echelon of Bitcoin mining companies.
On Monday, the company announced that it bought 160,000 Bitmain S21 miners and a call option to buy another 100,000 machines at $16 per terahash until the end of the calendar year. If the company were to exercise the option, it would boost CleanSpark’s hashrate to 50 EH/s, which marks a 400 per cent increase from its present hashrate of 10 EH/s.
Cleanspark expects delivery of the first 60,000 units between April and June 2024.
“This strategic agreement enhances our operational efficiency, provides massive optionality, and positions us to maximize opportunities that we expect on the horizon,” said CEO Zachary Bradford.
“We are ready to expand into the next bull market without the need to worry about an increase in machine prices, since the call purchase option acts as a hedge to this risk.”
Bradford expects machine prices to follow the same trend during the upcoming bull market as they did during Bitcoin’s prior bull run. The agreement gives the company the ability to manage its capital in the most efficient way possible by controlling all the variables it can.
It also provides the flexibility required to time its infrastructure growth with macro events happening in the sector, while maintaining cost efficiency.
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CleanSpark will be ready for the Bitcoin halving
Between 2017 and 2020, Bitcoin rose from low four figures at the start of the bull market to crest to approximately USD$69,000 at its all time high in November, 2021, and settled at the USD$16,000 mark a year later. Accordingly, prices of the machines and other infrastructure to mine the cryptocurrency fluctuated in relation to the core price, rising three to five times.
CleanSpark chose the S21 model from Bitmain over their T21 model or units from other manufacturers because of the S21’s impressive performance, making it the most efficient bitcoin mining machine available on the market.
After receiving initial units and conducting real-world tests, Bradford has determined that the S21 is more efficient and better suited for mining operations as the company prepares for the Bitcoin halving in a few months.
The Bitcoin halving is a scheduled event that happens every four years, where the rewards for miners are cut in half. This is done to control the creation of new Bitcoins and has a big effect on Bitcoin’s value and supply. The Bitcoin blockchain will halve on April 19, 2024.
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