CleanSpark Exceeds 17 EH/s, Exercises and Upgrades Previously Announced Option for 100,000 Bitcoin Mining Machines
- CleanSpark exceeds 17 EH/s of operating hashrate with the purchase of 100,000 Bitmain S21 Pros.
- The amendment to the agreement allows CleanSpark to acquire more efficient S21 Pro models at a low cost per terahash of $16.
- The S21 Pro operates at 15 J/TH, a 14% improvement over the previous S21 model, increasing the hashrate by 17%.
- CleanSpark's CEO highlights the importance of efficiency for the upcoming halving and the company's position as a leading bitcoin miner in North America.
- The new S21 Pros are set for delivery between June and December 2024, positioning CleanSpark for continued growth.
- None.
Insights
The acquisition of the Bitmain S21 Pros by CleanSpark and the subsequent increase in hashrate to 23.4 EH/s is a significant development from an energy efficiency standpoint. The S21 Pro's operational efficiency, at 15 joules per terahash, represents a 14 percent improvement over the previous model. This enhancement could lead to reduced operational costs for CleanSpark, as energy consumption is one of the largest expenses for bitcoin mining operations. The maintained cost of $16 per terahash, despite the upgrade, suggests a cost-effective strategy for the company, potentially improving its profit margins.
Furthermore, the timing of the upgrade is strategic, coinciding with the upcoming bitcoin halving event. Post-halving, mining rewards are reduced, increasing the importance of operational efficiency. CleanSpark's move to upgrade its equipment ahead of this event could position it favorably in the market, increasing its competitive edge as less efficient miners may struggle to maintain profitability. This proactive approach to energy efficiency could be a signal to investors of the company's commitment to long-term sustainability and cost management.
The enhancement of CleanSpark's mining capabilities through the upgrade to Bitmain S21 Pros and the increase in hashrate is noteworthy for stakeholders. The 17% increase in hashrate implies a direct impact on the company's bitcoin mining capacity and potential revenue generation. As the company asserts its position as a leading bitcoin miner in North America, its ability to produce more bitcoin per exahash than its peers is a key performance indicator.
The market implications of the halving event are also critical. Historically, halving has led to increased bitcoin prices due to reduced supply. CleanSpark's strategic upgrade positions it to capitalize on potential price increases while mitigating the impact of reduced mining rewards. This foresight may be positively perceived by investors as a robust strategy to navigate the cyclical nature of cryptocurrency markets.
Moreover, CleanSpark's emphasis on efficiency and scale could resonate with environmentally conscious investors, aligning with the growing trend of sustainable investment criteria. Their ability to increase production without additional energy consumption is a testament to their operational effectiveness and could influence investor sentiment and the company's stock performance.
Company negotiates option upgrade to new S21 Pros, increasing the total purchased hashrate by
The Company reached its new hashrate high as its recently acquired data center in
The machine purchase is an amendment to an existing agreement with Bitmain announced earlier this year. The amendment allowed the Company to purchase the S21 Pro model instead of the S21. The cost per terahash is maintained at the industry low price of
The S21 Pro operates at 15 joules per terahash (J/TH), a 14 percent improvement over the S21 miner which is currently the most efficient miner available on the market at 17.5 J/TH. The improved efficiency of the S21 Pro means that the company will still acquire the same number of machines, but with a 17 percent increase in hashrate, or approximately 3.4 EH/s more hashrate.
"Efficiency is the most important variable as we head into the halving," said Zach Bradford, CEO. "With the upgrade to the new S21 Pro, we expect that we have cemented our lead as the most efficient publicly traded bitcoin miner at scale in
Under the agreement, the new S21 Pros are scheduled for delivery between June and December 2024.
CleanSpark is among the largest publicly traded bitcoin miners in the world, consistently outpacing its peers in terms of bitcoin produced per exahash of operating hashrate, according to publicly available data.
About CleanSpark
CleanSpark (Nasdaq: CLSK) is America's Bitcoin Miner™. We own and operate data centers that primarily run on low-carbon power. Our infrastructure responsibly supports Bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. We cultivate trust and transparency among our employees and the communities we operate in. Visit our website at www.cleanspark.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: delivery dates and operating specifications of the purchased miners, anticipated additions to CleanSpark's hashrate and the timing thereof; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company's prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law.
Investor Relations Contact
Brittany Moore
702-989-7693
ir@cleanspark.com
Media Contact
Eleni Stylianou
702-989-7694
pr@cleanspark.com
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SOURCE CleanSpark, Inc.
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