Sustainability-focused Bitcoin (BTC) mining firm CleanSpark has snapped up one other 3,843 cryptocurrency miners amid a backdrop of mining business consolidation.
The $5.9 million buy of the Antminer S19J Professional Bitcoin miners announced by the corporate on Nov. 1 got here at a value of $15.50 per terahash — far cheaper than the present market value of $22.94 for a machine with the identical effectivity according to information from Hashrate Index.
The acquisition has introduced its whole variety of machines to round 50,000 in line with the corporate.
CleanSpark mentioned it is bought 26,500 miners for the reason that begin of the “bear market circumstances” — a time when many mining corporations have been compelled to unload mining gear and even take into account submitting for chapter.
There’s a risk that the miners had been bought from competitor Argo Blockchain as an Oct. 31 replace from Argo reveals 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 occurred between the businesses however didn’t instantly hear again.
Whereas different Bitcoin miners are struggling within the prevailing market circumstances, CEO Zach Bradford mentioned an “unwavering focus” on sustainability, a robust stability sheet, and its working technique has enabled CleanSpark to “purchase machines at unimaginable costs, develop our hashrate, and improve our day by day Bitcoin manufacturing.”
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In an earlier interview with Cointelegraph Matthew Schultz, government chairman of CleanSpark, mentioned one among CleanSpark’s working methods has been to view Bitcoin mining as a “potential resolution for creating extra alternatives for vitality improvement.”
For instance, CleanSpark companions with varied metropolis councils in the USA to purchase extra vitality as a way to enhance the effectivity of its mining operations – however it additionally cuts down vitality prices for these communities too, Schultz defined:
“These cities basically grow to be 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 problem growing and profitability reducing, mining corporations might want to search for new methods to diversify their income streams as a way to keep afloat, whereas some corporations could don’t have any choice however to consolidate to remain within the sport.
That was the case with Colorado-based Bitcoin miner Crusoe Power Methods, who purchased the working belongings of moveable BTC mining operator Nice American Mining (GAM).
CleanSpark additionally purchased a 36MW facility in Washington, Georgia in Aug. 2022, and just lately acquired an 80MW facility in Sandersville, Georgia in Oct. 2022 to go alongside its two present mining amenities.
Regardless of CleanSpark’s current success, its inventory value dropped 6.32% to $3.26 on Nov. 1 according to Yahoo Finance — nonetheless, the autumn was consultant of the broader Bitcoin mining sector.
