CleanSpark is getting ready for Bitcoin’s halving event by doubling its operating hash rate. They plan to achieve this by activating mining rigs in four new facilities they’ve recently bought.
CleanSpark Inc. plans to double its hash rate by the first half of 2024. They’ve decided to purchase four new mining facilities before Bitcoin’s reward for mining is halved, even as the Bitcoin ticker fell to $43,006.
CleanSpark Expands Mining Operations
CleanSpark recently made significant strides in expanding its mining operations. On February 6th, the company announced the acquisition of three mining facilities in Mississippi for $19.8 million. These facilities are expected to generate an immediate hash rate of 2.4 exahashes per second (EH/s) upon finalization of the purchase.
Additionally, CleanSpark has agreed to purchase another mining facility in Dalton, Georgia, for $6.9 million. However, this facility is still under construction and is anticipated to be operational by April 2024. Once completed, it will contribute 0.8 EH/s to CleanSpark’s hash rate.
Market Response and Growth Expectations
Following these announcements, CleanSpark’s shares experienced a notable 12% increase in value. With the upcoming energization of its Sandersville expansion, which will add 6 EH/s to the company’s hash rate, CleanSpark anticipates a significant boost in its operational hash rate. This expansion is expected to double CleanSpark’s hash rate from 10 EH/s to 20 EH/s in the first half of 2024.
Today we announced two new acquisitions, that combined with the imminent energization of the Sandersville expansion, provide us the additional power needed to double our current operational #hashrate of 10 EH/s and exceed 20 EH/s during the first half of 2024.$CLSK is venturing… pic.twitter.com/LLge0BlcOV
— CleanSpark Inc. (@CleanSpark_Inc) February 6, 2024
CleanSpark Prepares for Bitcoin Halving
As CleanSpark gears up for the impending Bitcoin halving event scheduled for late April, the company has made strategic moves to bolster its operations. With the halving set to reduce the mining reward from 6.25 BTC to 3.125 BTC, CleanSpark aims to enhance its efficiency in preparation for this significant event. CEO Zach Bradford highlighted that these recent purchases contribute to improving operating efficiencies in anticipation of the halving.
CleanSpark’s current and projected future hash rates by location. Source: CleanSpark
Market Performance and Competitor Comparison
On February 6th, CleanSpark’s stock (CLSK) closed trading at $8.70, marking a remarkable gain of over 12% for the day. In after-hours trading, CleanSpark continued to see modest gains of under 0.5%, according to Google Finance. Meanwhile, competitors Marathon Digital Holdings and Riot Platforms experienced increases of 2.5% and 4.5%, respectively, in their share prices on the same day.
CLSK’s share price on Feb. 6. Source: Google Finance
Yearly Performance and Correction
In 2023, CleanSpark’s shares surged by an impressive 440%. However, the company faced a price correction at the beginning of 2024, resulting in a 20% decrease in its year-to-date performance.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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