CleanSpark Inc (NASDAQ:CLSK) has purchased 2,400 Bitcoin mining S19-Pro rigs, which are expected to be delivered to its Atlanta mining operations in the first week of June. the company announced.
The new machines are designed to increase the overall hashrate efficiency, essentially the rate at which bitcoins are mined, of its existing fleet. The replacement of older-generation equipment is part of CleanSpark’s efforts to maximize energy efficiency when mining Bitcoin, in accordance with its ESG-focused approach, the company said, and is expected to increase production by about half a bitcoin per day. Bitcoin was valued at $49,642.15 Thursday morning.
CleanSpark has also reached an agreement to sell a portion of the replaced, prior generation rigs, which consume more power and produce a much lower hashrate. The company anticipates that the swap will decrease overall energy consumption by about 1 megawatt (MW) while increasing production efficiency of the replaced equipment by more than 37%.
READ: CleanSpark reports $7.4M in 2Q net income on rising revenues from expanded sales and marketing initiatives for its energy business
“This is an additional step in making our mining operation more efficient, which further aligns with our previously stated objective of operating all company-owned facilities at or near carbon neutral,” CEO Zach Bradford said in a statement. “We have publicly disclosed our current energy mix of 95% carbon-free power, at a fixed price of $0.0285 kWh (kilowatt-hour). In the current climate, being sufficiently capitalized to secure and quickly install this additional order of highly sought-after S19 Pro 110 TH/s units is a significant accomplishment. The 1 MW that will be made available as a result of the increased efficiency will now be used to power additional S19 units slated for arrival over the coming months.”
On top of the efficiency benefits, CleanSpark said it expects to make a significant profit on the sale of the older units, which it bought as part of its acquisition of ATL Data Center LLC in December.
“Because of the market and global increase in bitcoin prices and demand for rigs, we are able to sell our prior-generation, less-efficient models at substantial gains,” Bradford said. “This transition to the upgraded equipment is expected to increase our hashrate capacity to over 400 PH/s (petahashes, or quadrillion hashes, per second) while using the same amount of power that we previously used to generate 330 PH/s. At current difficulty rates this improvement will increase our daily production by an estimated half of a bitcoin per day."
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