Recent announcements reveal that some Bitcoin mining companies have defied the 44% decline in mining profitability over the past year and continued to build and increase their production capabilities.
CleanSpark, an American Bitcoin mining firm, recently made headlines by purchasing 12,500 brand-new Antminer S19 XP units for $40.5 million. The acquisition, priced at $23 per terahash per second (TH/s), comes at a lower rate than the average market price. Despite the challenges posed by the all-time high Bitcoin mining difficulty of over 50 trillion and near-peak network hash rate of 395 EH/s, CleanSpark remains determined to expand its operations.
The purchase agreement stipulates that 6,000 machines will be shipped in June, with the remaining units scheduled for shipment in August. These Antminer S19 XP units boast a hash rate of 141 TH/s, adding an impressive 1.76 exahashes per second to CleanSpark’s current capacity of 6.7 EH/s. CEO Zach Bradford is confident that this investment will help the company meet and potentially exceed its year-end target of 16 EH/s.
Bitcoin mining companies’ challenges
CleanSpark, operating its mining farms in Georgia, already has 67,700 mining machines in operation and has mined 2,395 BTC year-to-date. Despite the declining profitability of Bitcoin mining, currently, at $0.071 per TH/s per day (down 44% in the past year and 82% since the crypto market peak in late 2021), CleanSpark remains committed to its expansion plans.
Other Bitcoin mining companies have also demonstrated resilience in the face of profitability challenges. Bitfarms reported mining 459 BTC in May, a 6.5% increase compared to the previous year, despite a 65% rise in network difficulty. Cipher Mining achieved a record production of 493 BTC in May, largely driven by the spike in transaction fees during the BRC-20 memecoin minting craze.
Moreover, Compass Mining recently signed a deal with hosting provider Arthur Mining to establish a new facility in Ohio, showcasing the industry’s continued growth and determination to overcome profitability obstacles.
Despite the declining profitability of Bitcoin mining, these companies’ expansions and increased production signify their confidence in the long-term potential of the cryptocurrency and their commitment to seizing opportunities in the market.
