This Bitcoin miner acquired thousands of machines during the ongoing crypto winter
Bitcoin mining company CleanSpark has purchased 3,843 cryptocurrency miners to consolidate its position in the market. CleanSpark bought the Antminer S19J Pro Bitcoin miners for $5.9 million at a price of $15.50 per terahash.
The company revealed that the total number of machines purchased since the beginning of the bear market is more than 26,500.
This deal is crucial as it takes place at a time when many mining companies are selling their equipment or filing for bankruptcy.
The operation goes bankrupt as mining costs increase
The mining industry is facing challenges on several fronts as a result of rising energy prices and the weak value of cryptocurrencies.
Furthermore, lawmakers and environmental groups have continued to demand tougher measures to mitigate the negative effects of mining.
On September 22, Compute North, a leading data center for crypto mining, filed for bankruptcy in a US court. When it filed the papers, the company owed up to $500 million to at least 200 creditors.
Core Scientific (CORZ), the world’s largest Bitcoin mining company, warned last week that if the financial situation did not improve, the entity may consider filing for bankruptcy in court. The stock soon fell 77% to 23 cents.
Source: Digiconomist
The global energy consumption due to Bitcoin mining reflects the price movement of Bitcoin. The current price drop also reflects the drop in related energy consumption. As we can see, the energy consumption follows the same patterns as the price of Bitcoin.
The relationship between mining and Bitcoin’s price is simple enough. Miners are motivated to mine coins to a greater extent when cryptocurrency prices rise.
As more people join the mining community, the price of mining hardware rises. A sustained market downturn, on the other hand, forces miners to abandon the process and close their doors.
In addition, a number of US lawmakers are critical of the negative environmental impact of cryptocurrency mining. During a Senate Banking Subcommittee hearing last year, Massachusetts Senator Elizabeth Warren called to crack down on “environmentally wasteful” cryptocurrencies to combat the climate crisis.
“Bitcoin requires so much computing activity that it eats up more energy than the entire country,” she added. Warren is one of many lawmakers who are critical of the impact of mining on the environment.
Sailing against the waves
CleanSpark CEO Zach Bradford said the company has been able to invest in new hardware and increase production because of its focus on sustainability, a strong balance sheet and an operating strategy.
Chairman Matthew Schultz believes that CleanSpark sees Bitcoin mining as a “potential solution to create more opportunities for energy development.”
CleanSpark has made a number of acquisitions in recent months. The company acquired a 36MW facility in Washington, Georgia, including 3,400 mining machines, in August.
It purchased 10,000 brand new Bitmain Antminer S19j Pro units in September. It later completed the acquisition of an 80MW plant in Sandersville, Georgia, including 6,500 machines, in October.
