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Bitcoin miner CleanSpark boosts efficiency with significant Bitmain S21 deal

Cleanspark

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TL;DR

  • CleanSpark has purchased 60,000 Bitmain S21 miners with an option for 100,000 more, aiming to increase its hashrate to 50 EH/s, a 400% rise.
  • The strategic acquisition at a fixed price is a hedge against future price surges in mining equipment, enhancing operational efficiency.
  • The choice of the S21 model aligns with CleanSpark’s commitment to energy-efficient and high-performance Bitcoin mining operations

CleanSpark, a prominent North American Bitcoin mining firm, has announced a substantial procurement of Bitmain S21 miners. This acquisition marks a pivotal step in the company’s expansion strategy and preparation for future cryptocurrency growth.

Details of agreement

The initial agreement involves the purchase of 60,000 Bitmain S21 units, scheduled for delivery between April and June 2024. This initial investment amounts to $193.2 million, translating to a cost of $16.10 per terahash. The agreement also entails a strategic option for CleanSpark to acquire an additional 100,000 mining machines at a fixed price of $16.00 per terahash until the end of the year.

Upon full execution of this agreement, including the potential exercise of the call option, CleanSpark’s hashrate could soar to approximately 50 EH/s. This would represent a substantial 400% increase from its current hashrate of 10 EH/s, significantly enhancing its mining capacity and operational efficiency.

Zachary Bradford, the CEO of CleanSpark, emphasized the strategic importance of this agreement. According to him, this move not only ensures operational efficiency but also provides substantial optionality and positions CleanSpark to capitalize on future market opportunities. He highlighted the importance of the fixed-price option in mitigating risks associated with potential price increases in mining equipment, recalling the price surge experienced in the last bull market.

Choosing Bitmain’s S21 Model


CleanSpark’s choice of the Bitmain S21 model is a testament to its commitment to efficiency and performance. The S21 is known for its superior efficiency in bitcoin mining, making it an optimal choice for CleanSpark’s operations. Bradford pointed out that after initial tests, the S21 proved to be more efficient and suitable for their needs, aligning with CleanSpark’s goal of maintaining high energy efficiency and uptime in mining.

Looking ahead: CleanSpark’s market positioning

The purchase sets a solid foundation for CleanSpark to navigate the upcoming halving event, a periodic occurrence in the bitcoin network that reduces the reward for mining new blocks. This event is significant as it impacts the profitability and competition in the mining sector. CleanSpark’s preparation for this event, combined with its enhanced hashrate, positions the company to not only withstand the challenges of the halving but also to explore new growth avenues in the industry.

CleanSpark’s strategic investment in Bitmain S21 miners signifies a robust plan for expansion and efficiency. This move is expected to fortify its position as a leader in the competitive Bitcoin mining industry, ready to tackle the dynamics of the cryptocurrency market and the challenges ahead.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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