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Bitcoin Mining Continues To Expand Despite Profitability Challenges

Eli Dambel 2023-06-03 00:15

Hashrate Index reported a significant 44% drop in Bitcoin mining profitability, currently at $0.071 TH/s per day, over the past 12 months. Also, miners have seen an 82% decrease since the crypto market boom in late 2021.

But amidst this significant decline in profitability, a mining company, ClarkSpark, defies the trend by aggressively expanding its mining machine fleet this year. This shows that profitability issues are not holding back mining companies.

The firm revealed its latest move on June 1, purchasing 12,500 brand-new Antminer S19 XP units for a staggering $40.5 million. 

Notably, the deal was secured at a remarkable rate of $23 per terahash per second (TH/s), significantly lower than the present average market price.

Bitcoin Miner Purchase of 12,500 Antimer S19 XP Mining Machines

Based on the purchase agreement, the manufacturer is scheduled to ship 6,000 of the 12,500 machines in June, with the remaining 6,500 units set for shipping in August. These cutting-edge mining machines will be deployed across the company’s advanced facilities.

CleanSpark claims that the machine, Antimer S19 XP has a 21.5 joules per terahash power-efficiency rating and a Bitcoin mining compute power of 141 TH/S each.

According to the CEO of CleanSpark:

“This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s.”

CEO Zach Bradford further stressed that acquiring these additional machines could replace its current fleet’s units consuming over 30 joules per terahash. 

The CleanSpark website shows 67,700 mining machines working and has mined 2,395 BTC within the last year.

Despite the downturn in the mining market, CleanSpark still made waves in February with the acquisition of 20,000 Antminer S19j Pro+ units. The firm still made another purchase of 45,000 S19 XP ASIC rigs to their mining fleet in April. 

These strategic purchases solidify their commitment to staying at the forefront of Bitcoin mining technology.

Bitcoin Miners Achieve New Milestones

In another recent development, Compass Mining is expanding its operation by venturing into Ohio, a strategic move to further strengthen its presence in the mining sector.

Meanwhile, Bitfarms announced that it had mined 459 BTC in May, representing a production increase of 6.5% year-on-year.

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The company’s Chief miner posits that: “A 47% year-over-year increase in our hash rate was offset by a 65% increase in network difficulty in the same period.”

In addition, Ciphere Mining announced it had mined 493 BTC with a Hash Rate capacity of 6.0 EH/s in May 2023.

Also, Cipher Mining concluded the month of May with a daily mining potential of approximately 17.4 bitcoin, solidifying its position as a key player in the industry.

Featured image from Pixabay and chart from Tradingview.com