CleanSpark stock surges after deal to buy nearly 23,000 more bitcoin miners

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Shares of CleanSpark Inc.
CLSK,
-10.07%

surged 5.6% in morning trading Thursday, after the energy software and bitcoin mining company said it has bought 22,680 additional bitcoin miners, which the company expects will provide it with a total of mining production capacity of over 3.2 EH/s. The stock’s rally comes as bitcoin rose 0.4%, to trade just shy of Tuesday’s record close of $63,434.45, according to FactSet data. CleanSpark said the additional orders included 15,480 S19j Pro and S19Pro Antminers contracted from “a premier cryptocurrency mining equipment dealer” and 7,200 Sj19 Pro Antimers contracted directly from Bitmain Technologies Ltd. The company added that it has secured contracts on all the equipment needed to reach its target of a total has rate capacity of more than 1.1 EH/s by the summer of 2021. “Time is money in this industry, and we wanted to ensure that we have both our immediate needs covered but we also wanted to look to the future to ensure we had a reliable baseline supply of future miner deliveries secured to support our long-term growth,” said CleanSpark Chief Executive Zach Bradford. “In addition to these orders, we will continue to ource miners on a periodic basis to further increase or upgrade our total mining capacity.” CleanSpark’s stock has dropped 22.5% year to date, while bitcoin has soared 117.1% and the S&P 500
SPX,
+0.36%

has gained 10.6%.

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