Crypto Miner CleanSpark Extends Bear-Market Strategy, Buying 20K of Bitmain's Newest Rigs

The Bitmain Antminer S19j Pro+ machines will increase CleanSpark's computing power by 37%.

AccessTimeIconFeb 16, 2023 at 2:00 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

CleanSpark (CLSK) again took advantage of the distressed state of the crypto mining industry to buy 20,000 new rigs at below-market rates, according to a Thursday press release.

The company said it expects to pay $32.3 million for 20,000 new Bitmain Antminer S19j Pro+ mining rigs, after knocking the price down by 25% with coupons and discounts. That works out at $13.25 per terahash (TH), which is lower than the market price of $15.09 per TH for the S19j Pro+ category recorded on mining firm Luxor Technologies' price index. The price of mining rigs is often measured in dollars per terahash, a measure of computing power, because different machines have different specifications.

  • What Challenges Do Appchains Solve?
    00:59
    What Challenges Do Appchains Solve?
  • Appchain Protocol Tanssi Raises $6M
    18:57
    Appchain Protocol Tanssi Raises $6M
  • Breaking Down Internet Computer's 40% Rally
    00:59
    Breaking Down Internet Computer's 40% Rally
  • HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
    02:14
    HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
  • The miner started buying assets from rivals struggling to make ends meet during the market downturn as far back as June. Over the past few months, the sector has been hit hard by the slumping price of bitcoin and high energy costs, with major companies including Compute North and Core Scientific (CORZ) ending up in bankruptcy courts. Since the start of 2023, the situation has improved slightly along with energy markets.

    Once installed, the new machines will add 2.44 exahash/second (EH/s) to CleanSpark’s 6.6 EH/s of bitcoin mining power, a 37% increase. They will be delivered from the manufacturer to CleanSpark in batches by the end of May. CleanSpark plans to install 15,000 of them in its Washington, Georgia facility, which it acquired from Waha Technologies in August, depending on how an expansion of the site pans out.

    CleanSpark plans to reach 16 EH/s of computing power by the end of 2023.

    Bitmain released the Antminer S19j Pro+ in December. The model's performance was improved by 10% compared with the previous generation, it said. The manufacturer has been offering coupons and discounts since mid-2022 to boost sales, the coupons have ended up up for sale as companies filed for bankruptcy.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.