The bear market was harsh on the entire industry. While several filed for bankruptcy a few others went on to increase their holdings as most assets were selling at discounted rates. Bitcoin miners witnessed huge losses this time. Despite this, prominent BTC miner CleanSpark went on to make huge purchases this year.
According to reports, the company spent $5.9 million for 3,800 Antminer S19J Pro Bitcoin miners. These items were purchased by CleanSpark for $15.50 per terahash. It should be noted that the machine currently costs $22.94 and has the same efficiency. As a result, the company got these miners at a significantly lower cost.
In addition to this, there were speculations that CleanSpark could have made this purchase from its rival Argo Blockchain. Earlier this week, the firm reported that it sold 3,843 mining machines. The similarity in the numbers caused this speculation.
Following its latest purchase, CleanSpark’s machines count rose to 50,000. The Bitcoin miner further revealed that a total of 26,500 miners were bought since the beginning of the bear market.
The Bitcoin miner’s latest action took the crypto community by surprise as several other mining firms were seen heading toward bankruptcy. During the last week of October, Core Scientific, the largest Bitcoin miner by computing power was in discussions with restructuring attorneys. The firm is reportedly drowning in financial woes and is considering bankruptcy as an option.
Bitcoin mining profitability continues to plummet
As mentioned earlier, several mining firms were enduring major financial losses as mining profitability had taken a hit. As seen in the below image, Bitcoin mining’s six-month profitability chart shows a drastic drop.
Despite this, CleanSpark decided to make big investments in the arena.
Additionally, Bitcoin continued to trade in the $20K zone. At press time, the world’s largest cryptocurrency was priced at $20,393 with a daily drop of 1.13 percent.