CleanSpark Orders Purchases of New Bitcoin Mining Rigs to Survive Bear Market

Nevada-based bitcoin mining firm CleanSpark, Inc, announced on Thursday that it has placed a purchase order for 1800 Antminer S19 XP units as it continues expanding its infrastructure.

Once fully deployed, CleanSpark expects the mining machines to add over 252 petahashes per second (PH/s) to the company’s bitcoin mining capacity.

As per the acquired contract, the company said that the Antminer S19 XP machines will begin arriving at CleanSpark's facilities in August, and shipping will continue taking place through the next six months.

Besides that, CleanSpark disclosed that it has partnered with TMGcore Inc - a major developer of data centre hardware specializing in next-generation liquid immersion cooled technologies – to expand its immersion-cooled infrastructure for sustainable mining.

The new partnership with TMGcore includes 257 units of TMGcore’s proprietary immersion-cooled tanks that are designed to improve the performance of CleanSpark’s mining machines while significantly reducing their failure rates over long-term use.

CleanSpark plans to deploy the units in batches at its College Park, Georgia, and its facilities in other locations as determined. The partnership also provides CleanSpark with 2 megawatts (MW) of colocation capacity at TMGcore’s state-of-the-art immersion-cooled mining facility in Plano, Texas.

A Decline of Mining Profitability

The latest move seems that CleanSpark is taking advantage of the bear market and falling prices for Bitcoin mining rigs by purchasing new efficient miners.

It appears that the bearish market is hitting all sectors of the crypto space, including mining firms which are responsible for validating transactions and maintaining the network integrity of the Bitcoin network.

Currently, many Bitcoin miners are selling off their mined tokens as the reduced price of Bitcoin has slashed their profit margins. This happens coincidentally with wider capital markets that have become less friendly with major indexes officially entering a bear market, having lost 20% or more this year.

While the hard situation has forced some miners to close their businesses one by one, the survivors like Core Scientific, Marathon, Riot, Hut 8 and Bitfarms are not without casualties as news about their struggles has also emerged. Some of these firms started selling some of their mined Bitcoins that they normally hold on their balance sheets in order to pay for operational expenses.

However, the current difficult market condition is an opportunity for survivors to accumulate both Bitcoin and Bitcoin mining rigs. Firms that are prepared and acquire the latest generation equipment with locked-in power rates will benefit from current market conditions.