CleanSpark purchased over 3,800 mining machines at $15.50 per terahash, well below the current market price of $22.94 and a discount of 85.4% from the all-time high cost of $106.62 in December 2021.
Mining company CleanSpark has taken over another 3,843 cryptocurrency miners as part of the consolidation of the mining industry.
The $5.9 million purchase of Antminer S19J Pro Bitcoin miners announced by the company on November 1 was priced at $15.50 per terahash, much cheaper than the current market price of $22.94 for a machine with the same efficiency, according to Hashrate data. Index.
The purchase brought its total number of machines to around 50,000, according to the company.
CleanSpark said it has bought 26,500 miners since the start of “bear market conditions,” a time when many mining companies have been forced to sell mining equipment or even file for bankruptcy.
There is a possibility that competitor Argo Blockchain bought the miners, as Argo’s October 31 update shows that it sold 3,843 Bitmain S19J Pro machines, the exact number and model of miner that CleanSpark bought.
Cointelegraph contacted CleanSpark and Argo Blockchain to confirm whether a transaction had taken place between the companies, but did not immediately hear back.
While other Bitcoin miners are struggling in prevailing market conditions, CEO Zach Bradford said a “relentless focus” on sustainability, a strong balance sheet and its operating strategy have enabled CleanSpark to “acquire machines at incredible prices, grow and increase our hash rate”. our daily production of bitcoins.
Related: Top 3 Reasons Bitcoin Hash Rate Continues to Hit New All-Time Highs
In a previous interview with Cointelegraph, CleanSpark CEO Matthew Schultz said that one of CleanSpark’s business strategies was to use Bitcoin mining as a “potential solution to create more opportunities for energy development.”
For example, CleanSpark partners with several municipalities across the United States to purchase excess energy to improve the efficiency of their mining operations, but also lowers energy costs for these communities, Schultz explained:
“These cities basically become our utility providers. They earn a margin for every kilowatt hour we purchase to run our mining operations. But we buy such large amounts of energy that it drives up energy costs for the communities we work with.
But, with the difficulties of Bitcoin mining increasing and profitability declining, mining companies will look for new ways to diversify their revenue streams to stay afloat, while some companies have no choice but to consolidate to stay in business. the game.
That was the case for Colorado-based bitcoin miner Crusoe Energy Systems, which purchased the operating activities of portable BTC mining operator Great American Mining (GAM).
CleanSpark also purchased a 36MW facility in Washington, Georgia, in August.
Despite CleanSpark’s recent success, its share price fell 6.32% to $3.26 on Nov. 1, according to Yahoo Finance. However, the case was representative of the Bitcoin mining sector in general.