Sustainability-focused Bitcoin miner CleanSpark has recently agreed to purchase two ready-to-use mining facilities for $9.3 million in Dalton, Georgia, signifying a continued trend of substantial investments in the mining industry throughout this year. Upon completion of the deal by the end of the week, these mining facilities are expected to add almost 1 exahash per second of mining capacity to CleanSpark’s fleet. For context, an exahash is equivalent to 1 quintillion hashes.
In the world of cryptocurrency mining, rigs continuously generate hashes, or guesses, to solve a complex mathematical problem, ultimately aiming to be the first to create the next Bitcoin block. A higher hashrate correlates with increased chances of winning the Bitcoin rewards associated with the network’s next block, resulting in higher profits for the firm. CleanSpark’s CEO, Zach Bradford, emphasized that this acquisition will aid the company in exceeding its year-end target of 16 EH/s, positioning it as one of the most power-efficient miners concerning the energy-per-hash rate.
The new facilities will house 6,000 Antminer S19 XPs and S19J Pro+ mining rigs, which were ordered by CleanSpark earlier this year. The Antminer S19 XP is particularly notable for its power efficiency of 21.5 joules per terahash (J/TH). This efficiency makes the machine one of the best available, according to Hashrate Index. For Bitcoin miners, profitability revolves around enhancing their hashrate and minimizing facility costs, such as energy and maintenance. CleanSpark has already invested over $200 million in new rigs this year.
In February, CleanSpark purchased 20,000 S19J Pro+ machines for $13.15 per terahash ($/TH) – a total of $43.6 million. This investment was followed by the acquisition of 45,000 S19 XPs in April for $23/TH, amounting to approximately $144 million. Subsequent to that investment, the company used some of its existing machines to secure a loan for additional equipment. In June, CleanSpark added 12,500 S19 XPs to their collection for $23/TH ($40.5 million), with 6,000 of these scheduled to arrive this month.
CleanSpark CFO Gary A. Vecchiarelli revealed that the company’s latest acquisition has already been covered by existing cash reserves, and the investment is anticipated to generate revenue almost immediately. He noted that CleanSpark plans to capitalize on the current market conditions to prepare for the upcoming Bitcoin halving.
The Bitcoin halving, a scheduled 50% reduction in Bitcoin’s issuance rate, occurs approximately every four years. The next halving is predicted to happen in April 2024, reducing the number of Bitcoin per block from 6.25 to 3.125. Historically, these halvings have been succeeded by bull markets, with Bitcoin’s price reaching new heights in the following year. Consequently, many mining firms, including Iris Energy and Blockstream, seem to be investing in mining in anticipation of this event.
Source: Decrypt
