Crypto Mining Firms Are Trying to Adapt to the New Reality

Crypto mining firm CleanSpark made an important announcement. The company announced the purchase of over 1,000 Bitcoin (BTC miners amid the market downturn, reporting a “substantially discounted price” compared to that earlier in 2022.

According to the crypto mining firm, it had acquired 1,061 Whatsminer M30S rigs currently mining Bitcoin at the Coinmint facility in New York, whose space the company shares with Riot Blockchain. 

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CleanSpark said it had purchased the machines for far less of price than that “just a few months ago,” hinting the recent bear market was responsible. It also bought 1,800 Antminer S19 XP rigs in June following the market downturn.

ITts CEO Zach Bradford made an interesting comment. “We are seeing unprecedented opportunities in this market,” according to Bradford. 

According to the firm, the addition of the 1,063 miners added 93 petahashes per second (PH/s) to its total hash rate, reported to be 2.8 exahashes per second (EH/s) as of June 30. 

The miners brought in a 1,863 BTC, 328 of which it reported selling in June for roughly $8.4 million “for operations and growth.”

Crypto mining firms and main challenges

Major mining firms, including BitFarms, Argo Blockchain, Core Scientific as well as Riot Blockchain, have sold some of their BTC holdings amid the recent market downturn. 

Argo Blockchain and other crypto mining firms sold part of their Bitcoin holdings.

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Argo sold 637 Bitcoin (BTC) in June for an average price of $24,500 — roughly $15.6 million. The crypto mining firm planned to use the funds to reduce its debt to Galaxy Digital, from which the firm secured separate $20 million and $25 million BTC-backed loan agreements in 2021. 

Argo reported that as of June 30, it had an outstanding balance of $22 million on loan and holds “sufficient liquidity to avoid any potential liquidation of the BTC-backed loan if Bitcoin price continues to decline.”

Following the crypto sales, the company said it held 1,963 BTC as well as BTC equivalents as of the last day of June, roughly 18% less than that reported one month earlier. 

Other mining firms, including Core Scientific as well as Riot Blockchain, all reported selling a significant percentage of their Bitcoin holdings in June amid the market downturn as the price of the crypto asset fell below $18,000.

Let’s get back to Argo. The firm reported that it had scaled back mining operations at its Helios facility in Texas in the last month of spring following high temperatures — many parts of Texas experienced days of unbearable heat — leading to an “increased energy demand and higher electricity prices.” 

Nevertheless, its June report showed an increase in mined BTC as well as BTC equivalents from 124 to 179 due partly to “greater uptime at the Helios facility.” Riot Blockchain recently announced that it plans to move some of its mining fleet from New York to Texas.

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