Bitcoin mining company CleanSpark has acquired 3,843 cryptocurrency miners to solidify its position in the market. CleanSpark bought Antminer S19J Pro Bitcoin Miner for $5.9 million at $15.50 per terahash. The Company announced that the total number of machines purchased since the start of the bear market is more than 26,500. This deal is critical as it comes at a time when many mining companies are selling their equipment or go bankrupt.
Operations are going bankrupt as mining costs rise
The mining industry faces challenges due to rising energy prices and the slow value of cryptocurrencies. In addition, lawmakers and environmental groups continue to call for stricter measures to mitigate the negative impacts of mining. On September 22, Compute North, a leading crypto mining data center, filed for bankruptcy in a US court. When it applied, the Company owed at least 200 creditors up to $500 million.
Core Scientific (CORZ), the world’s largest bitcoin mining company, warned last week that the entity could consider filing for bankruptcy in court if its financial situation does not improve. Its shares soon fell 77% to 23 cents.
The global energy consumption due to bitcoin mining reflects the flow of bitcoin prices. The recent price fall is also reflected in the decreased associated energy consumption. As we can see, energy consumption follows the same patterns as the price of bitcoin. The relationship between mining and the cost of bitcoin is quite simple.
Miners are more motivated to mine when cryptocurrency prices rise. As more people join the mining community, mining hardware prices will increase. On the other hand, a prolonged market downturn is forcing miners to abandon the process and close their doors.
In addition, several US lawmakers have criticized the adverse environmental impact of cryptocurrency mining. During a Senate Banking Subcommittee hearing last year, Massachusetts Sen. Elizabeth Warren called for a crackdown on “polluting” cryptocurrencies to combat the climate crisis. “Bitcoin requires so much computing power that it consumes more energy than entire countries,” he added. Warren is one of many lawmakers to criticize the environmental impact of mining operations.
Sailing against the waves
Zach Bradford, CEO of CleanSpark, said the Company has been able to invest in new hardware and increase productivity thanks to its focus on sustainability, a strong balance sheet and operations strategy. Chief Executive Matthew Schultz believes CleanSpark sees Bitcoin mining as a “potential solution to create more opportunities for energy development.” CleanSpark has made several acquisitions in recent months. The Company acquired a 36 MW facility in Washington, Georgia, in August that includes 3,400 mining machines.
Acquired 10,000 new Bitmain Antminer S19j Pro units in September. Then, in October, it received an 80 MW facility in Sandersville, Georgia, including 6,500 units.