CleanSpark Pursues Assets Acquisition Amid Ongoing Crypto Winter

CleanSpark crypto mining firm has announced its intention to acquire more mining assets despite market challenges. The crypto miner is taking the bold step amid the current crypto winter where miners are suffering from the drop in Bitcoin prices and the high cost of energy.

CleanSpark plans to acquire my miners by taking advantage of the current spot market prices. The company took a similar decision last year when it bought 10,000 mining machines at reduced prices in September.

Management of CleanSpark said the firm hopes to finance potential deals by selling its mined Bitcoins and selling stocks. In order to do this, CEO Zach Bradford stated that CleanSpark will look towards increasing the number of shares authorized for issuance from 100 million to 300 million.

Additionally, Gary A. Vecchiarelli, CleanSpark’s Chief Financial Officer stated that the firm has achieved its goal of being among the top five miners. He went on to say, that the company was able to reach such heights by sourcing and closing transactions that increased its share of the total global hash rate.

According to highlights from CleanSpark’s Q1 financial results, the company noticed a sequential increase in revenues. The revenue growth from the previous fourth quarter was $1.6 million, or 6%. 

Consequences of the Bear Market on Crypto Mining

The crypto bear market has had a significant impact on the mining industry. In a bear market, the prices of cryptocurrencies tend to decline, which can cause a decrease in demand for mining activities.

When crypto prices fall, it can lead to a decrease in the amount of new mining equipment sold, which can have a knock-on effect throughout the industry. 

Manufacturers of mining equipment may experience lower demand for their products, which can result in reduced revenue and potentially even layoffs. As relating to this issue, Compass mining firm announced that it was closing operations in Georgia due to significantly low revenues.

Despite the above challenges, a bear market can also lead to a decrease in the number of new entrants into the mining industry. This can cause a reduction in competition, which can result in the consolidation of the industry and a concentration of mining power in the hands of fewer players.