CleanSpark’s Move Enough to Create Spark; CLSK Stock Slipped 4%

Cleanspark orders 20,000 mining rigs at a discounted price.
CLSK stock gained more than 24% in the last one month.

According to February 16, 2023 press releases CleanSpark, a crypto mining giant, played a smart move and placed a new order of 20,000 new mining rigs below market prices.

CleanSpark confirms that it is to pay $32.2 million for 20,000 new Bitmain Antminer S19j Pro+ after using coupons and discounts. As per the market prices, S19jPro+ is sold for $15.09 per TH, but the crypto miner purchased it for $13.25, which means the company got a discount of $1.84 per TH.

S19j Pro+ is the advanced version of previous generation rigs and was launched in 2022. The company offered coupons and discounts to boost the sale of its newly launched product.

The mining rigs will be delivered in batches, and the order will be fulfilled by the end of May 2023. The yet-to-be-installed rigs will increase the mining rate by 2.44 exahash/ per second. CleanSpark is planning to install 15,000 rigs in the Washington, Georgia facility, which CleanSpark acquired from Waha Technology.

The selling price of mining rigs is often calculated in dollars per terahash; a measuring unit is used to measure rigs’ computational power. Reports say it’s not the first time CleanSpark purchased mining equipment. Earlier in September 2022, it revealed that it was acquiring Mawson’s Bitcoin mining facility in Sandersville, Georgia, for $33 million.

At press time CleanSpark(NASDAQ: CLSK) stock was trading at $3.39, and the price slipped by 4.78% in the last 24 hours. In the trading session of the last one year, CLSK stock lost more than 67% of its trading price.

The yearly trading range is between $1.74-$13.91, meaning the CLSK stock lowest traded at $1.74 and had the highest trade at $13.91. CLSK has a total market capitalization of 264.40M USD.

Since the last few months, the crypto mining sector has been highly affected by the lowering price of Bitcoin and the increasing price of energy. As a result, over half a dozen crypto-mining companies filed for bankruptcy by the end of 2022.

By the end of 2022, renowned crypto miners Core Scientific and Compute North filed for bankruptcy due to volatility in the crypto market. CleanSpark is working hard to increase its computational power to 16EH/S by the end of 2023.

Meanwhile, in January 2023, most public miners increased their BTC production due to stable electricity prices and better weather conditions. According to the Hashrate Index report, the public BTC miners experienced steady growth in hash rate and Bitcoin production compared to the last month. Clean Spark, Core Scientific, and Riot are the best performers in January, per the report.

What is Bitmain?

Bitmain is a multinational semiconductor company established in 2013 that offers products, including chips, servers, and cloud solutions for blockchain. Bitmain is recognized as a leading brand in the production of integrated circuits for cryptocurrency mining and mining hardware under the Antminer brand. Bitmain supports an extensive range of startups and blockchain platforms.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing