CORRECTION: The last paragraph of this article has been corrected with information that CleanSpark filed on Mar. 28 to begin an additional $800 million ATM offering, not an incremental $300 million to its previous ATM program.
CleanSpark is “fully funded” to exercise an option to buy another 20 EH/s of bitcoin hashrate with cash raised through recent stock offerings and 5,021 BTC on its balance sheet, the firm said on Monday.
Currently the third largest public mining firm by proprietary hashrate, CleanSpark mined 806 BTC in the last full month before bitcoin’s halving event. That implies a realized hashrate of 16.19 EH/s.
Meanwhile, CleanSpark sold 3.37 BTC in March and a total of 12 BTC in Q1, adding almost all of its mining output for the year to date to its reserve of digital assets, which increased by 67.2% from 3,002 BTC as of Dec. 31.
The cash raised through stock offerings this year appears to have aided CleanSpark’s hodl mode. The firm had about $48 million in cash and cash equivalent as of Dec. 31. CleanSpark’s CEO Zach Bradford said in the update that the company now has a cash balance of over $300 million in addition to the $351 million worth of bitcoin.
“We are well on our way to taking advantage of what we expect to be one of the most active merger and acquisition seasons ever experienced in our industry,” Bradford said, adding that the company has the funds to exercise the options to buy 100,000 Antminer S21s secured in January.
As previously reported, CleanSpark signed a purchase agreement in January for 60,000 Bitmain’s Antminer S21s at $14/TH/s with an option to buy another 100,000 units for the same unit price.
The hardware purchase for the 160,000 units with a total hashrate of 32 EH/s would cost $448 million. However, to plug in the hashrate at such a scale, CleanSpark will need about another 560 megawatts of power capacity.
As of Mar. 27, CleanSpark raised net proceeds of $487 million from the at-the-market offering it filed on Jan. 8. On Thursday, CleanSpark amended the offering plan to issue another $800 million. The company has diluted its outstanding shares by 22% from 184 million as of Dec. 1 to 225 million as of Mar. 27.