Despite a decline in BTC mining profitability, bitcoin mining companies continue to expand

By Clark

Despite mining profitability being well below all-time highs, cryptocurrency mining company CleanSpark has been aggressively growing its fleet of mining equipment this year.

Despite a 44% drop in the profitability of mining Bitcoin BTC tickers down $27,127 over the previous year, some mining firms have continued to expand and boost output, according to recent announcements.

On June 1, the American bitcoin mining company CleanSpark said that it has paid $40.5 million for 12,500 brand-new Antminer S19 XP units. The agreed-upon price was $23 per terahash per second (TH/s), which is less than the going rate in the market.

The announcement comes as miners are under increased strain as Bitcoin mining difficulty hit an all-time high of over 50 trillion on June 1. At 395 EH/s on May 30, the network hash rate was also very close to its highest value.

According to the terms of CleanSpark’s purchase agreement, the manufacturer is expected to supply 6,000 machines in June and the remaining units in August.

The combined purchase will add 1.76 exahashes per second to the existing 6.7 EH/s of the Antminer S19 XP machines, which have a hash rate of 141 TH/s. CleanSpark’s CEO, Zach Bradford, stated:

This purchase guarantees that we are equipped to reach and possibly surpass our 16 EH/s year-end target.

Georgia is where the mining farms for CleanSpark are located. The company has 67,700 mining devices running, and as of today, it has mined 2,395 BTC, according to its website.

Despite diminishing Bitcoin mining profitability—which, according to Hashrate Index, has dropped to $0.071 per TH/s per day, down 82% from the top of the cryptocurrency market in late 2021 and down 44% over the previous 12 months—the company has continued to grow.

CleanSpark paid for 20,000 brand-new Antminer S19j Pro+ machines in February, then in April, it acquired 45,000 S19 XP ASIC rigs to add to its fleet.

Other recent company updates included Bitfarms’ disclosure that it mined 459 BTC in May, up 6.5% year over year. According to Chief Mining Officer Ben Gagnon, “a 65% increase in network difficulty in the same period offset a 47% year-over-year increase in our hash rate.”

With 493 BTC mined in May, Cypher Mining declared a record productivity. The jump in transaction fees during the BRC-20 memecoin minting frenzy, which peaked in early May, was the cause of the price increases.

Compass Mining and hosting company Arthur Mining signed a contract on May 31 to establish a new facility in Ohio.