![]() ![]() This is a good example of how higher transaction fees will offset the decreasing BTC block reward for CleanSpark and other miners in the future. The miner, AntPool, received the 83 BTC block reward for processing the transaction. While I expect CleanSpark to mine fewer BTC moving forward, the company will benefit from higher BTC prices along with transaction fees and Ordinal fees.įor example, someone paid over $3 million (83.65 BTC) in transaction fees to send 128 BTC on November 23rd, 2023. The current BTC block reward is 6.25 but BTC miners like CleanSpark will receive 3.125 BTC per block after April 2024. The Bitcoin Halving event is the most important catalyst for Bitcoin's price because it occurs once every 4 years and cuts the amount of daily released Bitcoin in half. That's where things could get interesting for CleanSpark if Bitcoin price soars over the next 12 to 24 months. Many Bitcoin experts predict the price of Bitcoin to skyrocket after the April 2024 Bitcoin halving due to a supply shock when the amount of mineable BTC per block decreases from 6.25 to 3.125 every 10 minutes. If the company scales production to 16 EH/s then I expect mining production to increase around 60% to ~1,000 BTC mined per month.Īt current Bitcoin prices, CleanSpark could generate around $37,000,000 million in monthly revenue or just over $100 million per quarter. However, that's exactly why I'm bullish on companies such as CleanSpark due to its massive upside potential at a relatively low valuation.ĬleanSpark mined 633 BTC in October at around 10 EH/s. It's understandable that small-cap companies get ignored by larger, more profitable companies such as Nvidia ( NVDA) or Tesla ( TSLA). Marathon Digital ( MARA) is the largest publicly traded Bitcoin mining company with a $2 billion market cap. Investors misunderstand the potential of the Bitcoin mining industry because it's a relatively small sector that doesn't have a lot of invested capital. These are impressive numbers considering CleanSpark shares trade under $5 as I write this at a sub $1 billion market cap. The company surpassed the 10 EH/s milestone with almost 89,000 operational Bitcoin miners deployed.ĬLSK October 2023 Update () What's interesting is that CleanSpark, along with most BTC miners, provides monthly updates on its mining operations.Īs of October 31st 2023, CleanSpark mined 633 BTC on October 2023 and increased its BTC stack to 2,311. Net losses were $14.2 million in Q3 2023 compared to $29.3 million in Q3 2023, which means CleanSpark should become profitable again as early as Q2 2024 due to the upcoming Bitcoin halving event.ĬleanSpark finished Q3 2023 with 1,200 BTC on its balance sheet and $90 million in cash on hand. ![]() The company hit record revenue of $45.5 million (Up 47% YoY) while tripling its hash rate year over year to 9 EH/s. CleanSpark Q3 2023 Business UpdateĬleanSpark achieved some key milestones in Q3 2023 as the company plans to expand its Bitcoin mining hash rate to 16 EH/s over the next few quarters. If this happens then that would make CLSK shares even more attractive in my opinion. ![]() It's possible that Bitcoin mining stocks could experience a near-term selloff due to the massive Bitcoin spot ETF runup. The company owns 100% of its Bitcoin mining facilities in Georgia plus co-owns another facility in New York. Led by Co-founder and CEO Zachary Bradford, CleanSpark is another founder-led crypto company that could surprise investors during the upcoming crypto bull run.ĬleanSpark Company Overview () However, CleanSpark has been aggressively stacked Bitcoin over the last few months while Marathon Digital has reduced its Bitcoin holdings. Many of my followers are well aware of my bullish stance on Marathon Digital Holdings ( MARA), which I covered here in one of my past articles.ĬleanSpark benefits from a lot of the same tailwinds since the company operates in the same industry. CleanSpark ( NASDAQ: CLSK) is the 2nd Bitcoin ( BTC-USD) mining company that I plan to hold over the long term because I believe CLSK stock is quite undervalued at current price levels.ĬLSK shares are up 138% YTD and have greatly outperformed both the S&P 500 ( SPY ) and NASDAQ 100 ( QQQ ) by a wide margin. ![]()
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