In order to make the cryptocurrency sales easier, CleanSpark has launched an institutional Bitcoin trading desk.
As mining stocks see widespread selloffs in the Q1 of 2025, the Bitcoin miner is placing a focus on self-funding.
On April 15, the US-based Bitcoin miner CleanSpark announced that it will begin selling a part of its monthly Bitcoin earnings in an effort to achieve financial independence.
Also, as stated in the announcement, CleanSpark was able to get a $200 million Bitcoin-backed credit facility by entering into a partnership with Coinbase Prime, the crypto exchange’s institutional brokerage branch.
According to CleanSpark CEO Zach Bradford:
The company has “achieved escape velocity — the ability to self-fund operations, augment our bitcoin treasury, and contribute to expansion capital through operational cash flow” thanks to the credit line and Bitcoin sales.
Placing Focus on Self-funding
In order to make the cryptocurrency sales easier, CleanSpark has launched an institutional Bitcoin trading desk, it said. As mining stocks see widespread selloffs in the Q1 of 2025, the Bitcoin miner is placing a focus on self-funding.
Morningstar reports that the CoinShares Crypto Miners ETF (WGMI), a publicly listed fund that tracks a varied group of Bitcoin mining companies, has seen a 40% decline in value since the beginning of the year.
In mid-2023, the company adopted an almost 100% hold policy. Now, according to Bradford, it’s time to change that and use part of their monthly output to fund operations again. If Bitcoin miners’ cost of capital rises due to falling stock prices, creditors may demand quicker payback of loans.
Following US President Trump’s announcement in April of intentions to impose massive tariffs on US imports, the pressure on mining equities intensified. Due to their reliance on specialized mining technology, which is often purchased from foreign manufacturers, US Bitcoin miners are particularly susceptible to trade disputes.
In contrast to its competitors, CleanSpark will not have to depend on equity dilution to pay operational expenses. Or on increasing borrowing to grow its Bitcoin reserves, according to Bradford.
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