Bitcoin Mining Operations Leveraging Energy Savings to Drive Profits
28 April 2021
- Bitcoin mining is central to the bitcoin ecosystem. It is a process that verifies transactions and provides security to the bitcoin blockchain, and it is how new bitcoins enter circulation. CleanSpark entered into this rapidly growing market through its acquisition of ATL Data Centers in December 2020.
- CleanSpark is focused on expanding its bitcoin mining operation and has secured the contracts necessary to increase its hashrate from 315 PH/s as of March 2021 to more than 1.1 EH/s by August 2021.
- The company recently ordered 22,680 additional bitcoin miners representing an incremental 2.2 EH/s of capacity and expects these new units will increase its total production capacity to over 3.2 EH/s by September 2022.
- At current difficulty rates, 1.1 EH/s would represent 6-7 bitcoins per day and 3.2 EH/s would represent 18-20 bitcoins per day.
- CleanSpark expects the growth from 1.1 EH/s to 3.2 EH/s to occur at an average rate of 160 PH/s per month from September 2021 to September 2022. This is approximately equivalent to increasing its bitcoin production by one additional bitcoin per day every month.
- The company produced more than 144 bitcoins in 2Q21 and has produced 205 bitcoins since the ATL acquisition. As of April 18, 2021, CleanSpark held more than 143 bitcoins on its balance sheet, all of which were produced by its mining operation.
- Management expects that revenue from bitcoin mining will grow significantly in the coming quarters on the back of expanded hashrate capacity, and over the long term, expects this business to generate more than $325 million in annual revenue assuming total production capacity of 3.2 EH/s and $50,000 per bitcoin.
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|52 Week Range||$1.25 - 42.60|
|Avg. Daily Vol. (30 day)||3,024,483|
|Shares Out (MM)||33.9|
|Market Cap (MM)||$750.4|
|Short Int. (MM) / % of float||1.7 / 5.2%|
|Debt to Equity||3.3%|
|Revenue TTM (MM)||$11.3|
|Fiscal Year End||September|