CleanSpark’s Bitcoin Mining Growth Amid Halving Event: Eco-friendly or Greenwashing?

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Despite Bitcoin prices remaining low compared to last year, US-based Bitcoin mining company CleanSpark Inc. has doubled its number of mined Bitcoin during the last quarter when compared to Q2 of the previous year. However, this didn’t result in proportionate revenue growth, which increased only by 14%. CleanSpark’s CFO, Gary A. Vecchiarelli, attributed the limited revenue growth to the struggling Bitcoin prices. He stated that their revenue per Bitcoin this quarter was approximately $22,700, whereas last year, it was over $41,000. Vecchiarelli added that the company’s improved hash rate positions them well for capitalizing on any slight increase in Bitcoin prices.

CleanSpark CEO Zach Bradford discussed the upcoming Bitcoin halving event, which refers to the moment when miners’ block rewards will be cut from 6.25 to 3.125 Bitcoin, expected to occur in April next year. According to Bradford, only the most efficient miners will have the production capacity and a solid balance sheet to capitalize on this historic event. He highlighted that CleanSpark’s current fleet averages 31 watts of electricity per Tera hash and expects to reduce it to around 26 watts by the end of the year.

In anticipation of the Bitcoin halving event, CleanSpark is reportedly adding 65,000 more mining computers to its Georgia-based facilities, maintaining low energy costs, and building up its Bitcoin reserves. The company plans to add another 20,000 Bitmain s19 jPro+ miners to its facility in Washington, GA, in the coming months, and an additional 45,000 Bitmain XP miners to another facility in Sandersville, GA, by the end of the year. Bradford claims that the added miners will significantly boost the firm’s total hash rate to 15.9 EH/s.

However, CleanSpark’s admirable goal to “leave the planet better than we found it” has proven to be more challenging than anticipated. They claim that their mining is primarily powered by renewable energy sources, but also note that they cannot control the energy mix available at certain locations. In compensation for the fossil fuel power that is used in some of their facilities, CleanSpark purchases “renewable energy credits” through programs like “Georgia’s Simple Solar.” Critics, however, argue that these energy credit programs do not genuinely contribute to a reduction in fossil fuel use.

Overall, while CleanSpark shows promising growth in its mining capabilities and commitment to eco-friendly practices, it remains to be seen how the company will continue to navigate the evolving cryptocurrency landscape and effectively contribute to a greener future.

Source: Decrypt

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