CleanSpark Doubles Down on Bitcoin Amid Industry Challenges

Coin WorldThursday, Mar 6, 2025 9:40 am ET

1min read

CleanSpark, a prominent Bitcoin mining company, has recently expanded its Bitcoin holdings, adding to its position as one of the largest corporate Bitcoin holders. This move comes at a time when the industry is facing significant challenges, including declining cryptocurrency prices and the upcoming Bitcoin halving event. The company's decision to increase its Bitcoin reserves reflects its commitment to a pure-play Bitcoin mining strategy, which contrasts with other mining firms that are diversifying into adjacent revenue streams such as high-performance computing for artificial intelligence (AI) models.

In February, cleanspark mined a total of 624 BTC, valued at over $55 million at Bitcoin’s spot price of approximately $89,000 on March 5. The company sold a small fraction—2.73 BTC—at an average price of more than $95,000 per coin, but added the majority of the mined Bitcoin to its growing treasury. As of Feb. 28, CleanSpark’s total Bitcoin reserves stood at 11,177 BTC, reinforcing its position as the fifth-largest corporate Bitcoin holder globally.

CleanSpark's CEO, Zach Bradford, emphasized that the company's strong February results demonstrate the effectiveness of its focused approach. This strategy aligns with a model previously championed by microstrategy, which has made significant headlines for its aggressive BTC accumulation strategy. By doubling down on Bitcoin accumulation, CleanSpark aims to benefit from BTC’s long-term appreciation, despite short-term market fluctuations.

CleanSpark has enjoyed a surge in revenue and profitability, thanks to lower production costs and the rising price of Bitcoin. In its first fiscal quarter of 2025, which ended on Dec. 31, 2024, CleanSpark reported $162.3 million in revenue, marking a 120% year-over-year increase. Net profits were $241.7 million (or $0.85 per share), a significant jump from $25.9 million one year earlier. The company also added 1,000 BTC to its treasury, strengthening its Bitcoin reserves.

Despite CleanSpark’s strong financial performance, the broader crypto mining industry faces mounting challenges. The company’s stock has declined more than 10% year-to-date, reflecting concerns over declining Bitcoin prices and the impact of the upcoming Bitcoin

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