Mentioned:
There is a growing euphoria around Bitcoin mining. And CleanSpark is making moves to prepare for the future of rapidly rising Bitcoin prices.
What’s happening:
- Bitcoin mining company CleanSpark (NASDAQ: CLSK) has announced a significant new purchase agreement to acquire more Bitcoin miners from Bitmain
- The new purchase agreement with Bitmain will deliver 60,000 new S21 Bitcoin miners to CleanSpark in the coming months, with a call option for CleanSpark to acquire another 100,000 miners in the future
By the numbers:
- The first 60,000 S21 Bitmain miners will be acquired for $193.2M USD
- The remaining 100,000 S21 Bitmain miners could be acquired in the future for a fixed price of $16.00 USD per terahash
Why it matters:
- During periods of extreme price appreciation for Bitcoin, Bitcoin mining equipment often spikes in both price and availability
- By locking in a call option agreement with Bitmain, CleanSpark is able to secure fixed pricing on expanding their mining capacity should they choose to equip new data centres
Going deeper:
- Bitcoin miners have recently been breaking records for revenue generated from both Bitcoin mining and on-chain transaction fees
- CleanSpark recently had their best ever month for Bitcoin mining in December, mining a total of 720 Bitcoin
- CleanSpark also just announced their plans to better manage their Bitcoin exposure and reduce costs by launching their own in house Bitcoin trading arm
