Thursday, March 28, 2024

BTC miner CleanSpark scoops up thousands of miners amid ‘distressed markets’

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Sustainability-focused Bitcoin (BTC) mining firm CleanSpark has snapped up one other 3,843 cryptocurrency miners amid a backdrop of mining trade consolidation.

The $5.9 million buy of the Antminer S19J Professional Bitcoin miners announced by the corporate on Nov. 1 got here at a worth of $15.50 per terahash — far cheaper than the present market worth of $22.94 for a machine with the identical effectivity according to knowledge from Hashrate Index.

The acquisition has introduced its whole variety of machines to round 50,000 in keeping with the corporate.

CleanSpark stated it is bought 26,500 miners because the begin of the “bear market situations” — a time when many mining corporations have been pressured to unload mining gear or even consider filing for bankruptcy.

There’s a risk that the miners have been bought from competitor Argo Blockchain as an Oct. 31 update from Argo exhibits it bought 3,843 Bitmain S19J Professional machines, the precise quantity and miner mannequin that CleanSpark bought.

Cointelegraph contacted CleanSpark and Argo Blockchain to verify if a transaction happened between the businesses however didn’t instantly hear again.

Whereas different Bitcoin miners are struggling within the prevailing market situations, CEO Zach Bradford stated an “unwavering focus” on sustainability, a powerful steadiness sheet, and its working technique has enabled CleanSpark to “purchase machines at unbelievable costs, develop our hashrate, and enhance our each day Bitcoin manufacturing.”

Associated: Top 3 reasons why Bitcoin hash rate continues to attain new all-time highs

In an earlier interview with Cointelegraph Matthew Schultz, govt chairman of CleanSpark, stated considered one of CleanSpark’s working methods has been to view Bitcoin mining as a “potential answer for creating extra alternatives for vitality improvement.”

For instance, CleanSpark companions with varied metropolis councils in the US to purchase extra vitality with the intention to enhance the effectivity of its mining operations – nevertheless it additionally cuts down vitality prices for these communities too, Schultz defined:

“These cities basically change into our utility supplier. They make a margin on each kilowatt hour we purchase to conduct our mining operations. But, we’re shopping for such excessive portions of vitality that it brings down vitality prices for the communities we work with.”

However with Bitcoin mining difficulty increasing and profitability decreasing, mining firms might want to search for new methods to diversify their income streams with the intention to keep afloat, whereas some firms could don’t have any choice however to consolidate to remain within the recreation.

That was the case with Colorado-based Bitcoin miner Crusoe Energy Systems, who purchased the working belongings of transportable BTC mining operator Nice American Mining (GAM).

CleanSpark additionally purchased a 36MW facility in Washington, Georgia in Aug. 2022, and lately acquired an 80MW facility in Sandersville, Georgia in Oct. 2022 to go alongside its two current mining amenities.

Regardless of CleanSpark’s latest success, its inventory worth dropped 6.32% to $3.26 on Nov. 1 according to Yahoo Finance — nonetheless, the autumn was consultant of the broader Bitcoin mining sector.