Some BTC miners declared bankruptcy or were seeking financial help to float. Others are finding unique ways to grow in the midst of a bear market.
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Mining company Cleanspark is expanding operations in the state of Georgia, increasing its mining capacity despite a persistent bear market.
Groundbreaking is underway for a new 50-megawatt bitcoin mining facility in Washington, D.C., Georgia, which is expected to be completed in late spring, CleanSpark revealed on Jan. 19. The company’s hash rate of 2.2 per second at a nearly $16 million expansion The Exhash rate is expected to increase, reaching a total hash rate of 8.7 EH/s.
The expanded facility will host up to 16,000 miners, including the newly disassembled Antminer S19J Pro and Antminer S19 XP models.
“This second phase more than doubles the size of the existing operation,” CEO Jack Bradford said.
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CleanSpark acquired the Georgia site in August, followed by a $33 million acquisition of local mining facility Mawson Infrastructure Group the following month. At the time, the company said it planned to support mining fleets of up to 70,000 units by 2023.
CleanSpark received approval to trade publicly on the Nasdaq Stock Exchange in early 2020. The following year, the company raised $200 million in capital through an equity offering
Like other publicly traded bitcoin miners, shares of CleanSpark (CLSK) have plummeted over the past year. Source: TradingView
From peak to trough, bitcoin prices have fallen more than 76%, forcing miners to rethink their business strategies to survive longer One of the industry’s biggest players, Core Scientific, filed for Chapter 11 bankruptcy in December. Mining conglomerate Greenridge received a $74 million lifeline just to stay afloat.
Related: Crypto miner explains how bitcoin mining stabilizes the network
During bear markets, some miners prospered by reducing energy costs and avoiding excessive leverage. In October, CleanSpark Executive Chairman Matthew Schultz told Cointelgraph that “Bitcoin mining is a potential solution to create more opportunities for energy development.”
