CleanSpark Inc., a Nasdaq-listed Bitcoin miner, has secured an agreement to purchase up to 160,000 Bitmain S21 miners. The company noted in a press release on Monday that the acquisition can move CleanSpark to a 50 EH/s hashrate.

The release comes days after CleanSpark revealed plans for an in-house trading desk this year to boost returns from its significant Bitcoin holdings.

CleanSpark’s initial agreement of 60k units

The release noted that CleanSpark’s initial agreement involves the acquisition of 60,000 units. The units contribute 12 EH/s and have shipping slated for the second quarter of 2024.

Additionally, CleanSpark has the option to buy another 100,000 miners at a fixed rate until the year’s end. This move could potentially quadruple the company’s current hashrate from 10 EH/s to about 50 EH/s if fully realized.

Zachary Bradford, CEO of the miner, “This strategic agreement enhances our operational efficiency, provides massive optionality, and positions us to maximize opportunities that we expect on the horizon.”

Prep for Bitcoin halving 

According to Bradford, the call purchase option serves as a protective measure against possible price surges in mining machines, which have historically increased three to five times during bull markets.

After testing, Bradford also confirmed the S21’s suitability for CleanSpark’s operations over other alternative models. The first batch of 60,000 units amounted to a deal of $193.2 million. The option to purchase an additional 100,000 units comes at $16.00 per terahash.

The company’s strategic steps come at the heels of the upcoming Bitcoin halving and a potential bull run.

Established in 2014, CleanSpark (listed on Nasdaq: CLSK) reportedly runs five data centers independently in Georgia, with a combined developed capacity of 230 megawatts (MW), as per information from MarketScreener.

Meanwhile, Bitcoin has started a rally after surpassing $47,000 at the start of the week. This comes after BTC clocked in an 8% increase.

Bradford added, “As we continue to expand our capacity, we are not only confident that we will successfully navigate the halving, but we also believe that we will unlock new avenues of growth, further solidifying our position as a top publicly traded bitcoin miner.”

The post CleanSpark Strikes Deal for 160,000 Bitmain S21 Miners Before Commencing In-House Trading appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am