CleanSpark Adds 12,500 New Antminer S19 XP Bitcoin Miners For $40.5M

Key Points:

• CleanSpark has spent $40.5 million on additional 12,500 Bitcoin mining equipment.
• The machines will increase processing power by 1.76 exahash/second (EH/s).
• During the crypto bear market, which has seen several prominent mining operations declare bankruptcy or otherwise reorganize, the company has purchased assets from struggling miners.

According to a Thursday news statement, CleanSpark announced the acquisition of 12,500 brand-new Antminer S19 XP bitcoin mining machines for a total price of $40.5 million, or $23 per terahash, which is cheaper than the current average market price.

The Antminer S19 XP units have a power-efficiency rating of 21.5 joules per terahash (J/TH) and a bitcoin mining computation power (or hashrate) of 141 terahash per second (TH/s), for a total hashrate of 1.76 exahashes per second (EH/s), moving them closer to their goal of 16 EH/s by the end of 2023. The firm’s hashrate was 6.7 EH/s at the end of April.

According to the purchase agreement, the company plans to send 6,000 of the 12,500 machines in June, with the other 6,500 units delivering in August. The devices are planned to be deployed across the company’s cutting-edge mining operations.

CleanSpark CEO Zach Bradford stated:

“This additional machine purchase also gives us substantial optionality to replace the units in our existing fleet that consume more than 30 joules per terahash while allowing us to maintain less efficient machines only if the economics support doing so.”

Throughout the crypto bad market, CleanSpark has been purchasing assets from struggling miners, which has seen a number of significant mining organizations declare bankruptcy or otherwise reorganize. In February, the company acquired 20,000 brand-new Antminer S19j Pro+ devices at a 25% discount for $13.15/TH, which were all completely paid for. CleanSpark additionally acquired 45,000 brand-new Antminer S19 XP units in April for $23/TH and has since made great headway on the payment schedule as it aims to establish one of the world’s most efficient Bitcoin mining fleets.

Yet, the purchase discount offered today is basically non-existent. According to mining services business Luxor Technologies, the machines were purchased for $23 per terahash, compared to a market pricing of $23.27 on May 31.

CleanSpark mines Bitcoin utilizing low-carbon energy sources that represent more than 90% of its energy mix, and it maintains a balanced capital management approach by selling a part of its generated bitcoins to reinvest in growth. CleanSpark exceeded its year-end forecast in 2022, doubling its hashrate and earning one of the greatest hashrate realization rates among its peers during the crypto bad market, thanks to this approach and the Company’s patented mining algorithm.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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