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Cleanspark Boosts Hashrate With $40.5 Million After Buying 12,500 Bitcoin Mining Rigs

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CleanSpark (CLSK) has announced its latest purchase of 12,500 Bitcoin mining rigs for $40.5 million, marking a continued acquisition strategy during the market downturn. 

CleanSpark’s Aggressive Expansion in Bitcoin Mining Operations

In a press release issued on Thursday, the company stated that these machines would contribute 1.76 exahash/second (EH/s) of computing power, or hashrate, significantly advancing CleanSpark’s operations towards its goal of reaching 16 EH/s by the end of 2023. At the end of April, the firm’s hashrate was recorded at 6.7 EH/s.

According to the press release, the initial shipment of 6,000 Bitmain Antminer S19 XP machines is expected to be delivered in June, with the remaining units scheduled for arrival in August. This procurement will bolster CleanSpark’s mining capabilities and position the company for further growth in the evolving cryptocurrency landscape.

During the crypto bear market, CleanSpark has actively purchased assets from distressed miners who have faced bankruptcy or restructuring. The company bought 45,000 Antminer S19 XPs in April, doubling its hashrate. Additionally, CleanSpark acquired 20,000 rigs in February at a 25% discount.

According to mining services firm Luxor Technologies, the machines were purchased at $23 per terahash (TH), while the market rate for models with efficiency under 25 J/TH on May 31 was $23.27/TH. Notably, the S19 XPs obtained by CleanSpark have an efficiency of 21.5 J/TH, which likely makes the market price higher than Luxor’s quoted rate. On the other hand, Compass Mining lists a price of $37/TH for this model.

CleanSpark Inc. Achieves Bitcoin Mining and Revenue Milestones

Zach Bradford, CEO of CleanSpark Inc. (Nasdaq: CLSK), announced that the company released its unaudited bitcoin mining and operations update for the month ending May 31. He stated that they achieved a significant milestone during May, with an increase in bitcoin in their treasury and surpassing $100 million in revenue for their fiscal year. Importantly, this milestone was an achievement, with the bulk of their expansion coming up later this year.

Bradford also highlighted that the amount of Bitcoin mined in May exceeded expectations, primarily because of increases in operational efficiency and a brief but significant surge in transaction fees. For approximately five days in May, they upgraded fees because of an interest increase in ordinals on the blockchain. 

During this period, their bitcoin production peaked at nearly 30 bitcoins in a single day, almost doubling their average daily production of about 18. Since then, transaction fees have returned to normal levels.

CleanSpark Inc.’s May Bitcoin Mining Update and Operational Progress

CleanSpark Inc. mined 609 bitcoins in May, bringing their year-to-date mining total to 3,004. As of May 31, the company held ‌451 bitcoins. They converted 471 bitcoins for operations and growth during the month. The company currently operates a fleet of approximately 67,196 latest-generation Bitcoin miners with a hashrate of 6.7 EH/s.

To fund their growth and operations, CleanSpark sold 471 bitcoins in May 2023. Each sold at an average price of approximately $27,400 per BTC. The sales generated proceeds of around $12.9 million. The average daily bitcoin mined in May was 19.6, with a peak of 29.6 during a brief period of high transaction fees.

Regarding operational updates, CleanSpark’s 50MW expansion in Washington remains on track despite some temporary delays caused by rain. With racking underway, the facility needs to have all units in place by the end of the month. It also needs to plan energization for the second half of June.

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