The more computing power a miner has, the more guesses per second it can generate and thus the more Bitcoin it can earn through this process. In simpler terms, the hashrate is how quickly a set of computers can guess a random code to receive a Bitcoin. The more guesses per second, the more likely a miner is to guess the hash and receive, in this case, a Bitcoin. The hashrate measures the number of guesses a miner's computer makes per second to solve for the hash. In crypto mining, a blockchain network generates an alphanumeric code called a hash that mining computers must guess. The company describes this as "a measure of the computing and processing power and speed by which a mining computer mines and processes transactions on the Bitcoin network." Any return to Bitcoin's highs would be a big driver for CLSK's stock.įor Bitcoin miners, one of the most important metrics is its hashrate. The price of Bitcoin has since rallied to over $23,000. The cryptocurrency has nosedived from its 2021 highs of over $67,000 to fall to under $16,000. OpportunitiesĪs a holder of Bitcoin, one of the biggest positives for CLSK would be a rebound in the price of Bitcoin. The company says it does not use a specific formula or program to sell its Bitcoin and instead relies on management analyzing forecasts and monitoring the market in real-time. It does not participate in regular Bitcoin trading, nor does it hedge its Bitcoin holdings. Coinmint's facility in New York also hosts some of its miners.ĬLSK will sell the Bitcoin it mines from time to time to support its operations and to fund strategic growth. Its primary site sits on 16.35 acres located in Sandersville, Washington County, Georgia. The company owns and operates its facilities and does not lease mining space to other mining companies or private individuals. It also has a co-location agreement with Coinmint. It then acquired an additional data center, picking up a second one in August 2021, a third data center and mining equipment in August 2022, and a fourth data center and mining equipment in October 2022. The company entered the Bitcoin mining space through its acquisition of ATL in December 2020. However, it discontinued that business in 2022. Before being in the Bitcoin mining space, it provided energy technology solutions to commercial and residential customers. In fact, the only cryptocurrency it mines is Bitcoin. Investors can consider a starter position but may be better off waiting until after the company does a secondary offering before getting more aggressive. CleanSpark ( NASDAQ: CLSK) is an interesting play on a rebound in Bitcoin ( BTC-USD) prices that should benefit from discounted mining equipment and lower energy costs.
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