- The facilities will contribute 1 exahash per second to the company’s hash rate
- The company aims to reach 16 EH/s by the end of the year
- Hash rates are expected to drop across the board after Bitcoin halving
CleanSpark, a Nasdaq-listed Bitcoin mining company, will pay $9.3 million in cash for two facilities in Dalton, Georgia, CoinDesk reported. The facilities will house more than 6,000 S19J Pro+s and Bitmain Antminer S19 XPs and are anticipated to contribute around 1 exahash per second (EH/s) to the company’s hash rate (computational power).
The company is upping infrastructure capacity
The company aims to reach 16 EH/s by the end of the year. According to CEO Zach Bradford, the new acquisition will ensure there’s sufficient infrastructure to reach this goal. CleanSpark paid just under $145 million for 45,000 new Bitmain Antminer S19 XPs in April this year.
Prospects for miners after halving
According to the company’s CFO, the organization continues to “make use of opportunities created by current market conditions to prepare for next year’s Bitcoin halving.”
The crypto industry is still suffering from the dramatic loss in Bitcoin’s value in 2022, along with higher expenses due to increased electricity prices. After the halving, mining companies will receive half the amount of Bitcoin for each block they mine. This reduction in block rewards will affect their profitability and mining income.
Increased competition
As the block rewards decrease, some less efficient miners may find it unprofitable to continue mining. This can lead to a decrease in the total hash rate of the network if a significant number of miners shut down their operations. CleanSpark might continue to make a profit because their setup is expected to become more efficient after the acquisition.
Bitcoin’s mining difficulty is designed to adjust every two weeks or so to maintain an average block production time of around 10 minutes. If many miners leave the network after the halving, the mining difficulty will decrease to accommodate the lower hash rate.
Technological innovation
Bitcoin halving has historically incentivized miners to improve their mining equipment and seek more energy-efficient solutions. To maintain profitability in the face of reduced block rewards, miners may invest in newer hardware or optimize their existing infrastructure, like CleanSpark.
