- CleanSpark agrees to purchase up to 160,000 Bitmain S21 miners for $193.2 million, with an option to acquire 100,000 more over the next year, in preparation for the upcoming Bitcoin halving.
- The halving will reduce block rewards, so miners like CleanSpark are boosting efficiency and hashrates to maintain profitability after the reduction.
- CleanSpark aims to increase its hashrate 5x to 50 EH/s with this investment, citing the need to stay competitive and ensure sustainable growth long-term.
CleanSpark Inc, the third largest public Bitcoin mining company by hashrate, has agreed to purchase up to 160,000 Bitmain S21 miners. This move could propel its hashrate to an impressive 50 EH/s over the coming year, marking a substantial leap from its current 10 EH/s.
The deal involves an initial investment of $193.2 million for 60,000 units and a strategic option to acquire an additional 100,000 miners at a fixed rate of 18TH/s over the next 12 months. The deal is a hedge against fluctuating prices once the halving kicks in.
The Halving Effect
Miners have been factoring in the halving into their projections for years, acknowledging its inevitability and preparing accordingly. The focus is on enhancing operational efficiency and securing economic incentives to continue supporting the Bitcoin blockchain.
This preparation is critical, especially for smaller miners who might struggle with profitability due to higher operational costs and less efficient equipment. The halving’s impact depends largely on Bitcoin‘s market price. A higher Bitcoin price can offset the reduced block rewards, maintaining or even increasing overall mining profitability.
CleanSpark’s investment signals strategic expansion ahead of Bitcoin’s next halving, aiming for a fivefold increase in hashrate. CEO Zach Bradford said the purchase was a strategic decision to prepare for the next halving and ensure long-term sustainable growth in an increasingly competitive industry.