CleanSpark secures 60K Bitmain S21 miners, plans to acquire 160K in total

Bitcoin mining company CleanSpark has inked a deal to acquire 160,000 miners by the end of 2024 after buying 60,000 Bitmain S21 miners for $193.2 million.

These machines are set to arrive between April and June, and the company holds a call option to buy an extra 100,000 machines at a fixed price of $16.00 per terahash until the end of 2024.

“If the full call option is exercised, $CLSK’s hashrate is expected to increase to approximately 50 EH/s, a 400% increase from our current hashrate of 10 EH/s, once all machines are deployed,” said CleanSpark in its X account.

In a press release, CleanSpark CEO Zachary Bradford provided insights into the company’s plans for the acquisition.

“We are ready to expand into the next bull market without the need to worry about an increase in machine prices, since the call purchase option acts as a hedge to this risk,” he said.

The expenses related to energy and equipment are expected to be balanced by the accumulating number of BTC mined over time. Fortunately, the industry has seen increased profits in the last two months, driven by the growing market value of BTC and the record-breaking transaction fees paid to miners.

Other miners gear up for halving with major acquisitions

Marathon Digital Holdings, Riot Platforms and Cipher Mining have also recently acquired additional machines in anticipation of the upcoming BTC halving event scheduled for April.

Marathon Digital is using its cash reserves to purchase two sites from Generate Capital subsidiaries, expecting a 30 percent reduction in mining costs and aiming to mitigate the impact of the forthcoming 50 percent reduction in blockchain reward. The $178.6 million acquisition adds 390 megawatts of capacity.

Meanwhile, Riot Platforms is making a substantial hash rate expansion with the purchase of 66,560 mining rigs from MicroBT for $290.5 million, gearing up for the Bitcoin halving in April 2024. Lastly, Cipher Mining is positioning itself as a key player by acquiring 16,700 new mining rigs, planning to enhance its mining capacity to 8.4 exahashes per second (EH/s) with installations in Texas during Q2 2024.

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