CleanSpark Expands Mining Operations in Anticipation of Bitcoin Bull Market, Targets $200K Peak

Bitcoin Mining Leader CleanSpark Bets Big on a Bull Market

On September 30, 2024, analysts from Bernstein rated CleanSpark as a strong performer. They believe a big Bitcoin bull market could follow the upcoming elections. CleanSpark is making moves to acquire and develop mining sites to take advantage of this potential surge.

CEO Zach Bradford shared his optimism with Bernstein analysts. He said, “I believe we could see Bitcoin peak just under $200,000 in the next 18 months.” He expects this upward trend to start after the U.S. presidential election.

To prepare for this possible rally, CleanSpark is rapidly expanding its mining capacity. Bradford noted, “We started the year with just under 10 EH/s; we crossed 26 EH/s this month. With those acquisitions, we should hit 30 EH/s very soon.”

CleanSpark is focusing on smaller, distributed mining operations instead of huge, centralized facilities. Bradford explained, “It’s much more valuable to the grid when you’re located in small pockets around substations. A distributed network can manage its own loads, making us more grid-friendly and allowing us to secure better prices.”

With recent site acquisitions, CleanSpark now has 1 gigawatt of power contracts across five states in the U.S. They are acquiring smaller sites, typically between 25 and 75 megawatts (MW), at a cost of less than $0.5 million per MW. This is much cheaper compared to their competitors.

Why This Matters

While some mining companies are shifting towards AI and high-performance computing, CleanSpark remains committed to Bitcoin. Bradford stated, “I don’t want to compete directly against hyper-scalers if it means being the 18th best at what we do. I aim to be the best at what we do, and the market is rewarding us for that.”

He also pointed out that AI data centers take longer to generate revenue, with most expected to start in 2026 or 2027. On the other hand, the Bitcoin opportunity is immediate, with energization and cash flows happening in weeks, not years.

Analyst Rating

Bernstein maintains an Outperform rating for CleanSpark, setting a price target of $30. This suggests a potential upside of 219% from current levels. They believe CleanSpark is well-positioned to benefit from the next Bitcoin bull market.

What’s Next

The role of Bitcoin as an institutional asset class will be a key topic at Benzinga’s Future of Digital Assets event on November 19.

Bitcoin bull Arthur Hayes predicts a “volatility supercycle.”

This content was partially produced with the help of AI tools and reviewed by Benzinga editors.

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