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 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 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 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 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.
