Bitcoin miner CleanSpark increases capacity by 37% after purchasing 20,000 ASICs.

Bitcoin miner CleanSpark increases capacity by 37% after purchasing 20,000 ASICs.

As the cryptocurrency rose to almost $25,000 the previous day, the bitcoin mining company CleanSpark stated on Thursday that it will buy 20,000 new ASIC equipment. 

The new rigs will increase its current computing force of 6.6 exahashes per second (EH/s) by 2.44 EH/s. Exahashes, which are used as inputs to solve the challenging arithmetic problems necessary to mine new blocks, are equal to one quintillion hashes.

According to the most recent data from Bitinfocharts, this increases the company's overall hashrate to 9 EH/s, a 37% increase, and represents 2.8% of the hash rate of the entire Bitcoin network.

According to a press release from the firm, CleanSpark anticipates paying about $32.3 million for the acquisition, a discount of 25%, or a total cost per terrahash of roughly $13.25. 

The equipment that the company bought was an Antminer S19j Pro+ model, which has a 22% higher productivity rate than the Antminer S19j Pro introduced in 2021. All batches are anticipated to arrive at the company's mining campuses by the end of May, with deliveries beginning early the following month.

Being a miner with a focus on sustainability, CleanSpark maintains several mining sites across the country, including one in Washington, Georgia, where it will send 15,000 of its recently acquired machines. The last month's announcement of the development will more than double the infrastructure's 36 megawatt to 86 megawatt capacity.

Only two months have passed since American mining goliaths like Core Scientific declared bankruptcy while others, like Iris Energy, had to liquidate a large portion of their mining equipment because they were unable to make their loan payments. 

Iris, on the other hand, only this week announced intentions to increase its capacity after Blockstream revealed a $125 million increase to extend its hosting services in late January.

Although it's too soon to declare a bull market in place, increasing price momentum is giving miners reason for optimism, according to CleanSpark Chief Communications Officer Isaac Holyoak. "Especially when you compare today's BTC pricing to the latter half of 2022, when miners also saw rising electricity expenses."

Although miner incentives are often expressed in a set number of BTC every block, mining is now more profitable thanks to Bitcoin's 49% increase since the beginning of the year. According to data from Glassnode from last month, when the commodity regained $18,800, the average Bitcoin miner returned to a position of net profit. 

Despite the enthusiasm, Holoyak claimed that his business has not yet switched to HODL mode. "We continue to sell a significant percentage of our bitcoin and reinvest the proceeds into machines and infrastructure," he added.

Article Credit: Decrypt

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