CleanSpark Inc., a United States-based Bitcoin (BTC) mining company, has revealed a strategic agreement that could potentially lead to the purchase of up to 160,000 Bitcoin miners by the end of 2024.
In a statement released on January 8, CleanSpark announced that it had already purchased 60,000 Bitmain S21 mining units at a rate of $16.10 per terahash, amounting to a total cost of $193.2 million. The delivery of these units is expected to occur between April and June 2024.
The agreement also includes an option for CleanSpark to exercise a strategic call option to acquire an additional 100,000 mining machines at a rate of $16 per terahash before the conclusion of 2024.
If all 160,000 miners are eventually installed, CleanSpark anticipates that its total hash rate will reach 50 exahashes per second (EH/s), marking a substantial 400% increase from its current hash rate of 10 EH/s.
CleanSpark’s CEO, Zachary Bradford, referred to the strategic call option as a “hedge” against the possibility of rising machine prices in bull markets. He explained that during previous bull markets, machine prices had increased significantly, and the company wants to be prepared for such scenarios in the future.
Bradford emphasized that this strategic agreement will enable CleanSpark to manage its capital more efficiently by controlling various variables, including the timing of infrastructure growth and certainty of costs associated with miners.
Several other companies in the Bitcoin mining industry, such as Marathon Digital Holdings, Riot Blockchain, and Cipher Mining, have also been acquiring more mining machines in preparation for the upcoming Bitcoin halving event, expected to take place in April.
Additionally, CleanSpark announced plans to launch an in-house trading desk in 2024 to optimize returns from its growing Bitcoin holdings. The company reported that it mined 720 BTC in December, increasing its Bitcoin holdings to 3,002, valued at $140.9 million at current prices.
CleanSpark’s share price experienced a 5% increase to $10.72 on January 8, reflecting a remarkable 385% rise over the past 12 months, according to Google Finance.
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