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CleanSpark boosts hashrate with new miner purchase

EditorEmilio Ghigini
Published 2024-04-12, 09:12 a/m
CLSK
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LAS VEGAS - CleanSpark Inc. (NASDAQ:CLSK), a prominent American Bitcoin mining company, has announced the activation of its upgraded mining capacity, achieving an operational hashrate exceeding 17 exahashes per second (EH/s). This milestone follows the company's decision to exercise an option to acquire 100,000 Bitmain S21 Pros, which will increase their total hashrate to 23.4 EH/s.

The purchase represents an amendment to a prior agreement with Bitmain, allowing CleanSpark to opt for the S21 Pro model over the originally planned S21. The S21 Pro offers a 14 percent improvement in energy efficiency, operating at 15 joules per terahash (J/TH) compared to the S21's 17.5 J/TH. Despite the upgrade, the cost per terahash remains at a competitive industry rate of $16.

Zach Bradford, CEO of CleanSpark, highlighted the importance of efficiency in the context of the upcoming Bitcoin halving event, stating that the upgrade positions the company as a leader in efficiency among North America's publicly traded Bitcoin miners.

He emphasized that the increase in hashrate, approximately 3.4 EH/s more than the original machines, would be achieved without additional energy use at their data centers, benefiting both the company and the Bitcoin network.

CleanSpark anticipates the delivery of the new S21 Pros between June and December 2024. The company, known for operating low-carbon power data centers, has consistently outperformed its peers in bitcoin production per exahash of operating hashrate.

The information in this article is based on a press release statement from CleanSpark Inc.

InvestingPro Insights

CleanSpark Inc. (NASDAQ:CLSK) has made significant strides in its operational capacity, as evidenced by its latest announcement to achieve an operational hashrate of over 17 EH/s. As the company gears up for increased productivity and efficiency with the acquisition of the Bitmain S21 Pros, let's delve into the financial metrics and analyst insights that could influence its performance and investor sentiment.

InvestingPro Data metrics show that CleanSpark boasts a substantial revenue growth of 75.4% over the last twelve months as of Q1 2024, with an even more impressive quarterly revenue growth of 165.24% in Q1 2024. This growth trajectory is a testament to the company's expanding capabilities and market reach. Despite not being profitable over the last twelve months, with an adjusted P/E ratio of -47.28, the company's significant gross profit margin of 52.39% indicates a strong underlying business model.

Two InvestingPro Tips that are particularly relevant to CleanSpark's current situation are:

  • Analysts are optimistic about the company's sales growth in the current year, which aligns with the company's recent operational advancements and increased mining capacity.
  • With 2 analysts having revised their earnings upwards for the upcoming period, the market sentiment appears to be positive, reflecting confidence in CleanSpark's strategic direction and future profitability.

These insights, along with the fact that CleanSpark's stock generally trades with high price volatility, suggest that potential investors should be prepared for a dynamic market performance. However, the company's strong return over the last three months, with a 88.7% price total return, and an even more remarkable one-year price total return of 371.17%, may catch the eye of those looking for high growth potential.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CLSK. To enhance your investment research experience, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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