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Continuous Expansion Amid Falling Profits
Despite Bitcoin mining profitability dwindling by 44% over the past year, several Bitcoin mining corporations are steadfast in their expansion and increased production, as revealed in recent reports.
CleanSpark, a U.S.-based Bitcoin mining company, unveiled on June 1 that it has acquired 12,500 Antminer S19 XP units for $40.5 million. This purchase equates to $23 per terahash per second (TH/s), a value below the prevailing market average.
This development arrives in the wake of Bitcoin mining difficulty attaining an unprecedented high of over 50 trillion on June 1, a situation that intensifies the strain on miners. Moreover, the network hash rate was nearing its zenith at 395 EH/s on May 30.
Delivery Schedule and Increased Hash Rate
The agreement with CleanSpark specifies that the supplier will dispatch 6,000 units in June, with the balance set for delivery in August.
Antminer S19 XP units boast a hash rate of 141 TH/s. Hence, the consolidated acquisition bolsters CleanSpark's current 6.7 EH/s hash rate with an additional 1.76 exahashes per second. Zach Bradford, CleanSpark's CEO, stated:
"The new acquisition places us in a strong position to meet and potentially surpass our end-of-year target of 16 EH/s.”
The mining sites of CleanSpark are situated in Georgia. The firm's website details that it operates 67,700 mining machines and has mined 2,395 BTC to date this year.
Defying Decreasing Mining Profitability
CleanSpark has proceeded with its expansion despite Bitcoin mining profitability falling to $0.071 per TH/s per day, a 44% decrease over the preceding 12 months, and an 82% slump since the crypto market's apex in late 2021, as noted by Hashrate Index.
CleanSpark procured 20,000 Antminer S19j Pro+ units in February, and in April, it included 45,000 S19 XP ASIC rigs in its fleet.
Other Company Announcements
In another recent update, Bitfarms reported that it mined 459 BTC in May, marking a 6.5% year-on-year production increase. Ben Gagnon, Chief Mining Officer, commented: “Despite a 47% year-over-year surge in our hash rate, network difficulty increased by 65% during the same timeframe.”
Cipher Mining reported record production in May with 493 BTC mined. The spike was attributed to the transaction fee surge during the BRC-20 memecoin minting frenzy that peaked in early May.
On May 31, Compass Mining secured a partnership with hosting provider Arthur Mining to inaugurate a new facility in Ohio.
