![]() This compares to Marathon Digital ( MARA) at the other end of the spectrum, with about $850 million in liabilities and $200 million in digital assets.įrom my perspective, some crypto investors may be overvaluing the crypto holdings of the miners. At the end of the calendar second quarter, CleanSpark had total liabilities of about $34 million and just over $10 million in digital assets. So we are very interested in acquiring XPs, but we will always measure the return on investments on that machine.ĬEO Zach Bradford, Fiscal Q3 2022 Results - Earnings Call, (link above) No Substantial HODL StrategyĪs mentioned above, CleanSpark is low debt but also has a relatively low amount of digital currency holdings compared to peers. They currently are costing about 100% more than an S19J Pro on the spot market. So to put that in perspective, the XPs are about 33% more efficient in output. its $50 a terahash for their August delivery. However, for now ROI is making the decision, as explained by Bradford: The XPs would perform well in a lower Bitcoin price environment and will possibly have a determinative advantage post the next halving in 2024. These earlier models have a stronger ROI and are efficient, though it should be noted they are less efficient than the XPs. Mining Equipment StrategyĬleanSpark has recently purchased some high-end MicroBT equipment and some high-end Bitmain S19 XPs, but generally is looking to acquire earlier models from the S19 Series. Not having a high quantity of higher priced and less priced protected equipment contracts is a tactical advantage CleanSpark has over a number of the peers. This is possible because the fall in Bitcoin prices has caused price protections to kick in on some of the company's rig contracts and the remaining commitments in this area are a relatively minimal $2 million. And importantly, the growth trajectory steepens in 2023 with a notable increase through hosting with Lancium in Texas.Īs additional power capacity at the new facilities comes online, CleanSpark primarily plans to equip the locations through the spot market, which now has significantly depressed pricing. So, CleanSpark is basically doubling its capacity from the end of the second calendar quarter, a time from which the total network growth has somewhat flattened. And this likely does not include another 1.4 EH/s from the latest acquisition of a facility in Sandersville. The company's now reiterated guidance from August is for about 5 EH/s of hashing capacity by year-end. So we are going a plug first approach on our infrastructure and we are very confident that the spot market will serve us well.ĬEO Zach Bradford, Fiscal Q3 2022 Results - Earnings Call, ĬleanSpark is enabling growth in their total network hash rate share through power supply acquisitions in Georgia. CleanSpark's Power Focused Growth Strategyīut our peers have shown that sometimes the number of machines you have, it doesn't matter unless you have a plug to plug it in. It tries to answer if CleanSpark should be on the watchlist of miners to receive increased allocations if inflation subsides and the Federal Reserve pivots to a less hawkish stance. The article below considers these operational strengths and their adjacent risks. The company has a competitive cost structure, a strong capital expense strategy and a regulatory moat provided by its renewable energy focus. Going under the hood beyond the low level of Bitcoin holdings, CleanSpark is relatively strong in a few key areas. So in round terms, CleanSpark with its 4 EH/s has about a 1.75% share and should be producing over 15 Bitcoins per day. Bitcoin's total network hash rate averaged about 225 EH/s over the past month. Put simply, miners are rewarded a share of a set amount of Bitcoins depending on the percentage of the total network hash rate they are able to supply. Hash rate is the measure of computational capacity a miner applies to a crypto-network, such as Bitcoin, that uses a proof-of-work consensus mechanism to secure its platform. On Tuesday, the company announced that it has now surpassed 4 EH/s of hash rate, a 30% increase in less than one month. However, among these peers it is last in market capitalization, primary because it is punished for having the lowest level of retained digital assets on its balance sheet. Of the eight largest and producing, Nasdaq listed Bitcoin ( BTC-USD ) miners, CleanSpark is solidly in fourth in deployed, operational and producing hash rate. ![]() When doing any ground level miner comparisons, CleanSpark ( NASDAQ: CLSK) immediately jumps out for its high level of production relative to its market capitalization.
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