CleanSpark Inc., a prominent US public Bitcoin mining firm, is poised to establish its own trading desk in a strategic move to optimize its Bitcoin holdings. This decision aligns with the company’s goal to fully leverage its substantial cryptocurrency assets.
In-House Trading Strategy for Optimal Returns
Zachary Bradford, CEO of CleanSpark, emphasized the financial logic behind managing their Bitcoin balance in-house. This approach is expected to yield higher returns, harnessing the company’s extensive expertise and understanding of risk profiles. CleanSpark’s decision to internalize its trading operations is a response to the growing trend of Bitcoin miners utilizing crypto derivatives, such as options, to augment income from their digital assets.
CleanSpark’s Bitcoin Holdings and Revenue
As of November, CleanSpark held a significant portfolio of 2,575 Bitcoin, valued at approximately $97 million. This holding forms a substantial part of the company’s assets, contributing to its notable fiscal year revenue of $168 million ending in September 2023.
Market Trends and Crypto ETF Optimism
The decision coincides with a period of increasing Bitcoin value and the anticipation of a US-approved Bitcoin exchange-traded fund (ETF). The rising value of Bitcoin, which soared almost 160% last year, has encouraged miners to retain their holdings.
CleanSpark’s Stock Performance and Market Capitalization
CleanSpark’s market presence strengthened in the previous year, with its shares surging 440% to approximately $11, thereby raising its market capitalization to around $2 billion. However, the stock faced a 79% decline in 2022, mirroring the broader downturn in the crypto market.
Crypto Mining Stocks on the Rise
The overall market cap of US-listed crypto mining companies has been flourishing, hitting a high of $17.2 billion in December, as reported by JPMorgan. This marks the highest level since November 2021, underscoring the sector’s robust growth.
CleanSpark’s Future Plans and Custody Strategy
CleanSpark is set to utilize regulated crypto offerings for its trading strategies, focusing on option contracts available through platforms like CME. Bradford confirmed plans to maintain cold storage custody with reputable holders such as Coinbase, ensuring secure and segregated account management.
