The bitcoin (BTC) mining company Sustainability-focused CleanSpark has acquired another 3,843 cryptocurrency miners against a backdrop of mining industry consolidation.
The $5.9 million purchase of bitcoin miners Antminer S19J Pro, announced by the company on November 1, was made at a price of $15.50 per terahash, much cheaper than the current market price of $22.94 for a machine. with the same efficiency according to Hashrate Index data.
The purchase has brought its total number of machines to about 50,000, according to the company.
CleanSpark said it had bought 26,500 miners since the start of “bear market conditions”, a time when many mining companies were forced to sell mining equipment or even consider bankruptcy.
There is a possibility that the miners were purchased from competitor Argo Blockchain, as an October 31 update from Argo shows that it sold 3,843 Bitmain S19J Pro machines, the exact number and model of miner that CleanSpark purchased.
Cointelegraph reached out to CleanSpark and Argo Blockchain to confirm whether a transaction took place between the companies, but did not get an immediate response.
While other bitcoin mining companies are struggling in the prevailing market conditions, CEO Zach Bradford said that an “unwavering focus” on sustainability, a strong balance sheet, and its operating strategy have allowed CleanSpark to “acquire machines at incredible prices, grow our hashrate, and increase our daily bitcoin production.”
In a previous interview with Cointelegraph, CleanSpark CEO Matthew Schultz said that one of CleanSpark’s operating strategies has been to view bitcoin mining as a “potential solution to create more energy development opportunities.”
For example, CleanSpark partners with several US municipalities to purchase excess energy to improve the efficiency of their mining operations, but it also reduces energy costs for those communities, Schultz explained:
“These cities basically become our service provider. They earn a margin for every kilowatt hour we purchase to run our mining operations. However, we are buying such large amounts of energy that it reduces the energy costs of the communities with which we work.”
Nevertheless, With the difficulty of bitcoin mining increasing and profitability declining, mining companies will have to find new ways to diversify their revenue streams to stay afloat, while some companies will be left with no choice but to consolidate to stay in the game.
That was the case for Colorado-based bitcoin miner Crusoe Energy Systems, which purchased the operating assets of portable BTC mining operator Great American Mining (GAM).
CleanSpark also purchased a 36MW facility in Washington, Georgia in August 2022 and recently acquired an 80MW facility in Sandersville, Georgia in October 2022.to accompany its two existing mining facilities.
Despite CleanSpark’s recent success, its share price fell 6.32% to $3.26 on November 1, according to Yahoo Finance. However, the drop was representative of the bitcoin mining sector in general.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.