CleanSpark Inc (NASDAQ:CLSK) shares are trading lower. The company on Monday announced the purchase of up to 160,000 Bitmain miners.
What To Know: CleanSpark said it entered into a strategic agreement to purchase up to 160,000 Bitmain S21 Bitcoin miners, representing the equivalent of 32 exahashes per second (EH/s).
CleanSpark initially purchased 60,000 units, which are expected to be delivered between April and June. The purchase price for the first 60,000 units is $16.10 per terahash, for a total of $193.2 million.
The agreement also includes a strategic call option to purchase an additional 100,000 machines at a fixed price of $16 per terahash until the end of the year.
If the full option is exercised, CleanSpark’s hashrate is expected to increase from 10 EH/s to approximately 50 EH/s once all machines are deployed.
“This strategic agreement enhances our operational efficiency, provides massive optionality, and positions us to maximize opportunities that we expect on the horizon,” said Zachary Bradford, CEO of CleanSpark.
“We are ready to expand into the next bull market without the need to worry about an increase in machine prices, since the call purchase option acts as a hedge to this risk.”
CleanSpark noted that the S21 mining machines are the most efficient on the market.
See Also: Bitcoin Adoption Spreads: Japanese Marketplace, Honduran Economic Zone Integrate
CLSK Price Action: CleanSpark shares were down 4.41% at $9.72 at the time of publication, according to Benzinga Pro.
Photo: Eivind Pedersen from Pixabay.
