CleanSpark Eyes Expansion Plans Ahead of Bitcoin Halving
With Bitcoin prices still falling since this time last year, CleanSpark took time during its latest earnings call to reassure investors about the firm’s financial health.
According to statements provided by CleanSpark Inc., US-based Bitcoin the mining company doubled the number of Bitcoins mined last quarter compared to Q2 last year, but revenue only increased by 14%.
CleanSpark CFO Gary A. Vecchiarelli said the weakened revenue growth was largely the result of low Bitcoin prices.
“Our revenue per Bitcoin this quarter was approximately $22,700, while last year our revenue per Bitcoin was over $41,000,” Vecchiarelli said in a conference call.
He added that the company’s improved hash rate makes it “well-positioned to benefit from even the slightest increase in bitcoin prices.”
CEO Zach Bradford was also quick to address the next halving event.
The halving refers to the moment when miners’ block rewards will be cut from 6.25 to 3.125 bitcoin, which is expected to happen sometime next April.
“Only the most efficient miners will have the production capacity and balance sheets to capitalize on this historic event,” Bradford said. He added that CleanSpark’s current fleet averages 31 watts of electricity per Tera hash, which he expects to reduce to as low as 26 watts by the end of the year.
CleanSpark and the Bitcoin Halving
Bradford suggested that for CleanSpark, the next halving is the starting line for the race, and that the company is “driving energy into our operational muscles” in preparation for the event.
CleanSpark’s training program appears to consist mainly of adding 65,000 more mining computers to their Georgia-based facilities, as well as maintaining low energy costs and building up their Bitcoin reserves.
CleanSpark is reportedly adding another 20,000 more Bitmain s19 jPro+ miners to its Washington, GA facility in the coming months, and another 45,000 Bitmain XP miners to another facility in Sandersville, GA, by the end of the year.
According to Bradford, the additional miners will increase the firm’s total hash rate to 15.9 EH/s.
While strengthening the fleet will certainly improve CleanSpark’s ability to quickly mine Bitcoin, the firm also strives to “leave the planet better than we found it.”
However, executing on this value is easier said than done.
CleanSpark boasts that its mining operation is largely powered by a renewable energy mix, but also notes that it cannot control the energy mix available in some locations. To offset some of the fossil fuel power used in their facilities, CleanSpark purchases “renewable energy credits” through programs like “Georgia’s Simple Solar.”
However, energy credit programs have been criticized for not truly representing a reduction in fossil fuel use.
