United States-based Bitcoin (BTC) miner CleanSpark Inc. has announced a strategic agreement that could see it purchase up to 160,000 miners by the end of 2024, significantly expanding its mining operations.

According to the statement, CleanSpark has already purchased 60,000 Bitmain S21 units at a price of $16.10 per terahash for a total cost of $193.2 million. These miners are expected to be delivered between April and June 2024. In addition, CleanSpark has secured a strategic call option to purchase an additional 100,000 machines at a price of $16 per terahash before the end of 2024. If all 160,000 miners are installed, CleanSpark's hash rate is expected to reach 50 exahashes per second (EH/s), marking a 400% increase from its current 10 EH/s.

CleanSpark's CEO, Zachary Bradford, explained that the strategic call option serves as a "hedge" against rising machine prices during bull markets. He noted that in the last bull market, machine prices increased by three to five times, and they expect a similar trend in future bull markets.

Bradford emphasized that the strategic agreement allows CleanSpark to manage its capital more efficiently and control as many variables as possible. It also provides the flexibility to time infrastructure growth with macro events while ensuring certainty of cost on the miners.

CleanSpark's move to acquire more miners comes as several other major Bitcoin mining companies, including Marathon Digital Holdings, Riot Platforms, and Cipher Mining, have also been ramping up their operations in anticipation of the upcoming Bitcoin halving event expected to take place in April.

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