Bitcoin Miner CleanSpark Buys Another $193 Million Of Mining Equipment After Stock Downturn
As Bitcoin’s (BTC)’s price surges to multi-year highs, mining firm CleanSpark has closed another nine-figure infrastructure deal to help the company seize as many newly minted units of BTC as possible.
In a press release on Monday, the company announced that it has purchased 60,000 Bitmain S21 miners for $193.2 million, at an average of $16.10 per terahash per second (TH/s). The machines are expected to arrive between April and June of this year.
The firm also secured a call option to purchase an additional 100,000 machines at a fixed price of $16.00 per terahash, up until the end of 2024.
Today we announced the purchase of 60,000 Bitmain S21 units with delivery expected April through June 2024. The agreement also includes a strategic call option to purchase an additional 100,000 machines at a fixed price of $16.00 per terahash until the end of the calendar year.… pic.twitter.com/LDwHT9ERM1
— CleanSpark Inc. (@CleanSpark_Inc) January 8, 2024
“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,” wrote CleanSpark CEO Zachary Bradford in an accompanying statement.
Should the call option be exercised, CleanSpark expects to reach a total capacity of 50 exahashes per second (EH/s) upon full deployment, up 400% from its present fleet. By current standards, that would be nearly 10% of the entire Bitcoin network’s hash rate.
A ‘hash’ is a guess answer to the cryptographic puzzle that miners consume energy to solve. A terahash is equal to one trillion hashes, and an exahash is equal to one million terahashes.
Energy and equipment costs are meant to be offset by the number of BTC that miners accumulate over time.
