CleanSpark, a BTC mining firm, has purchased 3,843 crypto miners to consolidate its position within the marketplace. The company bought the Antminers Pro for $5.9M at $15.50/Terahash. Also, CleanSpark confirmed machine count purchased since the bear market arrived stands over 26,500.
The deal remains critical as it emerged when most mining firms file for insolvency or sell equipment. That’s due to the current global financial woes.
Bankruptcy Amid Rising Mining Cost
The mining space faces hurdles in multiple sectors due to surging energy costs and deteriorated crypto values. Moreover, environmental advocacy groups and lawmakers continue to suggest stiffer rules to avoid the negative impact of cryptocurrency mining.
Compute North is a renowned cryptocurrency mining data center. It filed for insolvency in a United States court on September 22. During the bankruptcy filing, the firms owed around $500 million to about 200 creditors.
Last week, the world’s leading BTC mining firm Core Scientific warned about a possible bankruptcy filing if its monetary condition keeps deteriorating. Its stock hit 23 cents after losing approximately 77%. The global power usage due to BTC mining reflects Bitcoin’s price flow.
Also, the ongoing price slump indicates a decline in associated energy consumption. Indeed, power usage mimics BTC price patterns. The connection between BTC’s price and mining is enough. Surging crypto prices motivate miners.
Meanwhile, the mining hardware price soars as more individuals enter the mining space. Meanwhile, sustained market slumps force miners to suspend their operations and close their shops. Furthermore, several United States lawmakers criticize the environmental effect of crypto mining.
Elizabeth Warren, Massachusetts senator, called for a clampdown on environmentally wasteful digital coins to fight the climate crisis. She stated that BTC needs massive computing power, which translates to consuming more power than the whole country.
Warren is among the multiple lawmakers criticizing the effect of crypto mining undertakings on the environment.
Against the Waves
CleanSpark chief executive officer Zach Bradford stated that the firm has invested in new machines and improved its production amid its concentration on a massive balance sheet, an operating strategy, and sustainability.
CleanSpark has made several acquisitions over the past few months. The firm purchased a 36MW machine in Washington, Georgia. Moreover, it acquired 3,400 mining rigs in August.