Crypto mining company CleanSpark is exploring a major expansion of its operations over the next two years. The firm says it has a strategic call option that would allow it to purchase up to 160,000 additional itcoin">Bitcoin mining machines before the end of 2024.
If fully exercised, the move would grow CleanSpark’s total hashrate to 50 exahashes per second – a 400% increase over its current level. It reflects preparations across the crypto mining industry for the next itcoin">Bitcoin halving event, expected in April 2024.
CleanSpark frames the call option as a hedge against rising miner costs during the next bull market. The company’s CEO Zachary Bradford says machine prices rose 3-5x last cycle, and positioning now allows them to control costs.
The potential 160K miner purchase would build on the 60K Bitmain S19 units CleanSpark already agreed to buy for $193 million in recent months. Deliveries on that batch will occur between April and June 2024.
By locking in expanded capacity, CleanSpark aims to maximize returns on its growing itcoin">Bitcoin holdings. The company mined 720 BTC last month, bringing its total reserves to 3,002 coins worth over $140M today. An in-house trading desk launching next year will further that strategy.
The Utah-based firm specializes in energy-efficient itcoin">Bitcoin mining. Its share price rose 5% on the expansion news, capping a 385% overall gain the past year. With the strategic call option, CleanSpark ensures flexibility to scale hashrate amid “macro events” in the next bull cycle.
