Bitcoin just hit a high of $45,831. All thanks to increased interest from institutional and retail investors, and news that Tesla (NASDAQ:TSLA) just bought $1.5 billion worth of Bitcoin.
According to CNBC, “The company said it bought the bitcoin for ‘more flexibility to further diversify and maximize returns on our cash,’ according to the filing. In addition to the purchase, Tesla said it would start accepting payments in bitcoin in exchange for its products as well. That would make Tesla the first major automaker to accept bitcoin as payment.”
Institutions have become just as bullish. For example, Goldman Sachs, JP Morgan, and Citi are all reportedly looking into crypto custody, as well, notes CoinDesk. Guggenheim Investments’ Scott Minerd says Bitcoin could be worth up to $400,000. Even Bridgewater’s Ray Dalio has said Bitcoin is “one hell of an invention.”
Those could be significant catalysts for miners and companies involved with cryptocurrencies, including Riot Blockchain Inc. (NASDAQ:RIOT), Marathon Patent Group (NASDAQ:MARA), and Bit Digital Inc. (NASDAQ:BTBT).
The Bitcoin rally has also been good for CleanSpark, Inc. (NASDAQ:CLSK)
The diversified software and services company today provided a 60-day post-acquisition update on its Bitcoin mining operations and announces that it expects to further increase its Petahash rate in February 2021, beyond prior projections.
CleanSpark has continued to procure and deploy mining equipment as part of its strategic growth initiative, purchasing its equipment mostly through dealer networks rather than directly through the manufacturers to ensure immediate availability. Orders for new mining equipment continue to be delivered in multiple shipments and are promptly commissioned as they arrive. Prior to the end of February, the Company expects to have in excess of 315 Ph/s of Bitcoin mining capacity deployed. This will represent a greater than 65% increase in mining capacity since the December 10, 2020 acquisition.
CleanSpark has focused on increasing energy capacity in conjunction with the expanding mining capacity as it continues to progress toward its goal of mining at the lowest cost of energy for any domestic Bitcoin mining operation. Energy costs and power capacity, factored with the overall environmental impact of mining operations will become increasingly important as difficulty levels increase, and greenhouse gas emissions are more strictly regulated under the Biden administration. In light of companies like MicroStrategy, PayPal, Square and Tesla making substantial investments into Bitcoin, demand is expected to increase which will certainly invite scrutiny surrounding the single biggest factor in mining operations that support the blockchain--energy.
Zach Bradford, CleanSpark’s President and Chief Executive Officer stated, “With companies such as Tesla making large strategic investments in Bitcoin, we believe the validation as a currency has only just begun. CleanSpark has been focused on increasing mining capacity but this hasn’t changed any of the long-term plans for renewable energy implementation and deployment of our technologies and solutions to further decrease power costs.” Adding, “The mining capacity that is expected to be fully online by month-end should rival many of the ‘pure play’ publicly traded mining companies ‘actual’ deployed mining capacity. While other companies have focused on pre-ordering machines, we have focused on putting available capacity immediately to work.”
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