Bitcoin Miner CleanSpark Increases Credit Line, Revises HODL Strategy

TL;DR

• CleanSpark plans to sell a portion of its monthly Bitcoin mining to fund its operations and prevent share dilution, changing its strategy from holding entirely.
• The company has increased its Coinbase Prime credit line to $200 million and created an institutional treasury department to streamline the management of its digital assets.
• With over 12,000 BTC in reserve and a hashrate of 40.2 EH/s, the company aims to reach 50 EH/s and establish itself as a self-sufficient and efficient operator.

CleanSpark has revised its operational and financial strategy, announcing that it will no longer retain 100% of the Bitcoin it mines.

Starting in April, the company will begin selling a portion of its monthly production to cover expenses , in an effort to avoid issuing additional shares. This decision is a change from a previous policy adopted in mid-2023, when the company focused on accumulating all mined BTC.

The announcement comes alongside an increase in its credit line with Coinbase Prime , which now stands at $200 million . This BTC-backed funding allows CleanSpark to operate without having to resort to capital dilution . In addition, the company has officially launched an institutional treasury department focused on digital assets . This team will work with select partners in the areas of lending, custody, and derivatives following a competitive bidding and evaluation process.

CEO Zach Bradford clarified that the current strategy combines partial BTC sales with long-term reserve accumulation . The goal is to keep operations self-funded and avoid mechanisms that could drive down the stock price. According to Bradford, this strategy is aimed at maximizing operational and financial performance in a growth environment .

CleanSpark aims to be the most efficient company in the industry

CleanSpark also noted that its Bitcoin holdings exceed 12,000 units , with an estimated value of $1 billion . The company is well on its way to reaching its goal of 50 exahashes per second (EH/s) in mining power. It currently operates at 40.2 EH/s.

Unlike other companies in the sector, which rely on equity issuance or debt to fund growth, CleanSpark has taken a different strategy. It focuses on using debt secured by its own digital assets and operating cash flow generated by its mining projects.

The market reacted positively to the announcement. The company's shares rose more than 1% in the first half of the day , beating the sector average as measured by the WGMI ETF. CleanSpark aims to be one of the most financially efficient companies in the Bitcoin industry.

Source: cryptonews.net