- CleanSpark Inc. revealed today its strategic move to acquire up to 160,000 Bitmain S21 miners.
- The purchase is equivalent to an impressive 32 exahashes per second (EH/s).
- CleanSpark has initially secured 60,000 units, with delivery scheduled between April and June 2024.
CleanSpark Inc., a prominent player in the North American Bitcoin mining sector, revealed today its strategic move to acquire up to 160,000 Bitmain S21 miners, marking a significant expansion for the company. The purchase, equivalent to an impressive 32 exahashes per second (EH/s), solidifies CleanSpark’s position as one of the largest and most efficient publicly traded Bitcoin mining companies in the region.
As part of the agreement, CleanSpark has initially secured 60,000 units, with delivery scheduled between April and June 2024. Notably, the deal incorporates a strategic call option, enabling CleanSpark to acquire an additional 100,000 machines at a fixed price of $16.00 per terahash until the end of the calendar year. If exercised in full, this call option is expected to boost CleanSpark’s hashrate to approximately 50 EH/s, showcasing a remarkable 400% increase from its current hashrate of 10 EH/s.
CleanSpark’s CEO, Zachary Bradford, emphasized the operational advantages and flexibility gained through this strategic move. “This strategic agreement enhances our operational efficiency, provides massive optionality, and positions us to maximize opportunities that we expect on the horizon,” Bradford stated. He highlighted the significance of the call purchase option as a hedge against potential increases in machine prices, enabling the company to expand seamlessly into the next Bitcoin bull market.
Bradford drew parallels with past market trends, noting, “In the last bull market, machine prices increased by three to five times, and we expect the same to occur in future bull markets. This agreement allows us to manage our capital most efficiently by controlling as many variables as possible.”
The decision to opt for Bitmain’s S21 model over other alternatives was grounded in the machine’s exceptional performance. The S21 is touted as the most efficient Bitcoin mining machine available, a crucial factor for CleanSpark in maintaining its commitment to being best-in-class.
“As we continue to expand our capacity, we are not only confident that we will successfully navigate the halving, but we also believe that we will unlock new avenues of growth, further solidifying our position as a top publicly traded Bitcoin miner,” Bradford affirmed.
The financial details of the initial 60,000 units reveal a purchase price of $16.10 per terahash, totaling $193.2 million after discounts and coupons. The subsequent acquisition of the additional 100,000 units remains at a fixed price of $16.00 per terahash, underlining CleanSpark’s strategic and cost-effective approach to enhancing its Bitcoin mining capabilities.