Bitcoin Mining Businesses Continue to Grow Despite Falling BTC Mining Profitability

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Despite a 44% decline in Bitcoin (BTC) mining profitability over the past year, some Bitcoin mining companies have continued to build and increase production, according to recent announcements.

On June 1, US mining company CleanSpark announced that it had purchased 12,500 brand-new Antminer S19 XP units for $40.5 million. The deal worked at $23 per terahash per second (TH/s), which is below the average market price.

The news comes as Bitcoin’s mining difficulty hit an all-time high of over 50 trillion on June 1, putting further pressure on miners. The network’s hash rate was also near its peak level at 395 PE/s on May 30.

The CleanSparks purchase contract stipulated that 6,000 machines were to be shipped by the manufacturer in June and the rest would be shipped in August.

The Antminer S19 XP units have a hash rate of 141 TH/s, with the combined purchase providing an additional total hash rate of 1.76 exahashes per second to its current 6.7 EH/s. Zach Bradford, CEO of CleanSpark, said:

This purchase ensures that we are ready to meet and potentially exceed our year-end target of 16 PE/s.

CleanSparks mining farms are located in Georgia. According to its website, the company has 67,700 active mining machines and has mined 2,395 BTC since the start of the year.

Bitcoin Hashprice 1 year. Source: Hashrate Index

The company has continued to expand despite declining Bitcoin mining profitability, which fell to $0.071 per TH/s per day, down 44% in the past 12 months and 82% since the market peak of crypto at the end of 2021, according to Hashrate Index.

In February, CleanSpark purchased and paid for 20,000 brand-new Antminer S19j Pro+ units and in April, it added 45,000 ASIC S19 XP rigs to its fleet.

Related: Mining Difficulty Surpasses 50 Trillion 5 Things to Know About Bitcoin This Week

In other recent company updates, Bitfarms announced that it mined 459 BTC in May, increasing production by 6.5% year-over-year. A 47% year-over-year increase in our hash rate was offset by a 65% increase in network difficulty over the same period, said mines manager Ben Gagnon.

Cipher Mining announced record production in May with 493 BTC mined. The increases were due to soaring transaction fees during the BRC-20 memecoin minting craze that peaked in early May.

On May 31, Compass Mining signed an agreement with hosting provider Arthur Mining to open a new facility in Ohio.

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