04-16-2025, 01:05 AM
CleanSpark to start selling Bitcoin in 'self-funding' pivot
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNhYmYtYTAwNS03ZjVlLTlhMWItYjZhYzg2ZjAxMWE0.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNhYmYtYTAwNS03ZjVlLTlhMWItYjZhYzg2ZjAxMWE0.jpg" alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot"></p><p>CleanSpark will start selling a portion of the Bitcoin earned from its mining operations each month in a bid to become financially self-sufficient, the US Bitcoin miner said on April 15. <p>In addition, CleanSpark secured a $200 million credit facility backed by Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) through an agreement with Coinbase Prime, the institutional brokerage division of the crypto exchange, <a data-ct-non-breakable="null" href="https://www.prnewswire.com/news-releases/cleanspark-expands-capital-strategy-with-200m-bitcoin-backed-credit-facility-from-coinbase-prime-shifts-to-self-funded-operations-302428927.html" rel="null" target="null" text="null" title="https://www.prnewswire.com/news-releases/cleanspark-expands-capital-strategy-with-200m-bitcoin-backed-credit-facility-from-coinbase-prime-shifts-to-self-funded-operations-302428927.html">according</a> to a statement.</p><p>Together, the Bitcoin sales and credit line mean CleanSpark has “achieved escape velocity — the ability to self-fund operations, augment our bitcoin treasury, and contribute to expansion capital through operational cash flow,” Zach Bradford, CEO of CleanSpark, said. </p><p>CleanSpark has opened an institutional Bitcoin trading desk to facilitate the cryptocurrency sales, it added. </p><figure><img alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot" src="https://s3.cointelegraph.com/uploads/2025-04/01963b07-467e-734c-8221-30339b58cb73" title=""><figcaption style="text-align: center;"><p><em>Crypto mining stocks are down sharply in 2025. Source: </em><a data-ct-non-breakable="null" href="https://www.morningstar.com/etfs/xnas/wgmi/chart" rel="nofollow noopener" target="_blank" text="null" title="https://www.morningstar.com/etfs/xnas/wgmi/chart"><em>Morningstar</em></a></p></figcaption></figure><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report"><em><strong>Bitdeer turns to self-mining Bitcoin, US operations amid tariff tumult — Report</strong></em></a></p><h2>Navigating market volatility </h2><p>The Bitcoin miner’s emphasis on self-funding comes as mining stocks reel from across-the-board selloffs in the first quarter of 2025. </p><p>Shares of CoinShares Crypto Miners ETF (WGMI) — a publicly traded fund tracking a diverse basket of Bitcoin mining stocks — are down more than 40% since the start of the year, according to <a data-ct-non-breakable="null" href="https://www.morningstar.com/etfs/xnas/wgmi/portfolio" rel="null" target="null" text="null" title="https://www.morningstar.com/etfs/xnas/wgmi/portfolio">data</a> from Morningstar. </p><p>“[W]e believe this is the right time to evolve from a nearly 100% hold strategy adopted in mid-2023 and move back using a portion of our monthly production to support operations,” Bradford said. </p><p>Cheaper stock prices effectively increase Bitcoin miners’ cost of capital and can potentially cause creditors to demand faster loan repayments. </p><p>Analysts at JP Morgan attributed the downturn to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-miners-languish-crypto-market-rout-jpmorgan" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-miners-languish-crypto-market-rout-jpmorgan">eroding cryptocurrency prices</a>, which added pressure to business models already strained by the Bitcoin network’s April 2024 halving. </p><p>Halvings occur roughly every four years when the Bitcoin network automatically cuts mining rewards in half. </p><figure><img alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot" src="https://s3.cointelegraph.com/uploads/2025-04/01963b0b-3291-71f3-8bd0-c27d002bc84c" title=""><figcaption style="text-align: center;"><p><em>Price per Bitcoin versus network hashrate. Source: JPMorgan</em></p></figcaption></figure><p>In April, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-stocks-down-ipos-punted-amid-tariff-tumult" rel="" target="_self" text="null" title="https://cointelegraph.com/news/crypto-stocks-down-ipos-punted-amid-tariff-tumult">pressure on mining stocks worsened</a> when US President Donald Trump announced plans for sweeping tariffs on US imports.</p><p>US Bitcoin miners are <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tariffs-capital-controls-could-disrupt-blockchains-including-bitcoin-execs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/tariffs-capital-controls-could-disrupt-blockchains-including-bitcoin-execs">especially vulnerable to trade wars</a> because they rely on specialized mining hardware, often sourced from foreign manufacturers. </p><p>Bradford said he expects CleanSpark’s financial self-sufficiency to differentiate it from peers “who continue to rely on equity dilution to fund operating costs or increased leverage to grow their Bitcoin reserves.”</p><p>Other miners are taking similarly aggressive measures to adapt to the changing market.</p><p>Bitdeer, a Singapore-based crypto miner, has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report">reportedly touted plans</a> to start manufacturing mining hardware in the United States to mitigate the impact of Trump’s planned import tariffs. </p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-mine-soldiers-crypto-pickup-line-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template><p><br></p><p><br></p></p>
</p>
https://cointelegraph.com/news/clean-spa...er_inbound
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNhYmYtYTAwNS03ZjVlLTlhMWItYjZhYzg2ZjAxMWE0.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNhYmYtYTAwNS03ZjVlLTlhMWItYjZhYzg2ZjAxMWE0.jpg" alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot"></p><p>CleanSpark will start selling a portion of the Bitcoin earned from its mining operations each month in a bid to become financially self-sufficient, the US Bitcoin miner said on April 15. <p>In addition, CleanSpark secured a $200 million credit facility backed by Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) through an agreement with Coinbase Prime, the institutional brokerage division of the crypto exchange, <a data-ct-non-breakable="null" href="https://www.prnewswire.com/news-releases/cleanspark-expands-capital-strategy-with-200m-bitcoin-backed-credit-facility-from-coinbase-prime-shifts-to-self-funded-operations-302428927.html" rel="null" target="null" text="null" title="https://www.prnewswire.com/news-releases/cleanspark-expands-capital-strategy-with-200m-bitcoin-backed-credit-facility-from-coinbase-prime-shifts-to-self-funded-operations-302428927.html">according</a> to a statement.</p><p>Together, the Bitcoin sales and credit line mean CleanSpark has “achieved escape velocity — the ability to self-fund operations, augment our bitcoin treasury, and contribute to expansion capital through operational cash flow,” Zach Bradford, CEO of CleanSpark, said. </p><p>CleanSpark has opened an institutional Bitcoin trading desk to facilitate the cryptocurrency sales, it added. </p><figure><img alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot" src="https://s3.cointelegraph.com/uploads/2025-04/01963b07-467e-734c-8221-30339b58cb73" title=""><figcaption style="text-align: center;"><p><em>Crypto mining stocks are down sharply in 2025. Source: </em><a data-ct-non-breakable="null" href="https://www.morningstar.com/etfs/xnas/wgmi/chart" rel="nofollow noopener" target="_blank" text="null" title="https://www.morningstar.com/etfs/xnas/wgmi/chart"><em>Morningstar</em></a></p></figcaption></figure><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report"><em><strong>Bitdeer turns to self-mining Bitcoin, US operations amid tariff tumult — Report</strong></em></a></p><h2>Navigating market volatility </h2><p>The Bitcoin miner’s emphasis on self-funding comes as mining stocks reel from across-the-board selloffs in the first quarter of 2025. </p><p>Shares of CoinShares Crypto Miners ETF (WGMI) — a publicly traded fund tracking a diverse basket of Bitcoin mining stocks — are down more than 40% since the start of the year, according to <a data-ct-non-breakable="null" href="https://www.morningstar.com/etfs/xnas/wgmi/portfolio" rel="null" target="null" text="null" title="https://www.morningstar.com/etfs/xnas/wgmi/portfolio">data</a> from Morningstar. </p><p>“[W]e believe this is the right time to evolve from a nearly 100% hold strategy adopted in mid-2023 and move back using a portion of our monthly production to support operations,” Bradford said. </p><p>Cheaper stock prices effectively increase Bitcoin miners’ cost of capital and can potentially cause creditors to demand faster loan repayments. </p><p>Analysts at JP Morgan attributed the downturn to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-miners-languish-crypto-market-rout-jpmorgan" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-miners-languish-crypto-market-rout-jpmorgan">eroding cryptocurrency prices</a>, which added pressure to business models already strained by the Bitcoin network’s April 2024 halving. </p><p>Halvings occur roughly every four years when the Bitcoin network automatically cuts mining rewards in half. </p><figure><img alt="CleanSpark to start selling Bitcoin in 'self-funding' pivot" src="https://s3.cointelegraph.com/uploads/2025-04/01963b0b-3291-71f3-8bd0-c27d002bc84c" title=""><figcaption style="text-align: center;"><p><em>Price per Bitcoin versus network hashrate. Source: JPMorgan</em></p></figcaption></figure><p>In April, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-stocks-down-ipos-punted-amid-tariff-tumult" rel="" target="_self" text="null" title="https://cointelegraph.com/news/crypto-stocks-down-ipos-punted-amid-tariff-tumult">pressure on mining stocks worsened</a> when US President Donald Trump announced plans for sweeping tariffs on US imports.</p><p>US Bitcoin miners are <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tariffs-capital-controls-could-disrupt-blockchains-including-bitcoin-execs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/tariffs-capital-controls-could-disrupt-blockchains-including-bitcoin-execs">especially vulnerable to trade wars</a> because they rely on specialized mining hardware, often sourced from foreign manufacturers. </p><p>Bradford said he expects CleanSpark’s financial self-sufficiency to differentiate it from peers “who continue to rely on equity dilution to fund operating costs or increased leverage to grow their Bitcoin reserves.”</p><p>Other miners are taking similarly aggressive measures to adapt to the changing market.</p><p>Bitdeer, a Singapore-based crypto miner, has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitdeer-turns-to-self-mining-amid-tariff-tumult-report">reportedly touted plans</a> to start manufacturing mining hardware in the United States to mitigate the impact of Trump’s planned import tariffs. </p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-mine-soldiers-crypto-pickup-line-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template><p><br></p><p><br></p></p>
</p>
https://cointelegraph.com/news/clean-spa...er_inbound