Bitcoin (BTC) Miner CleanSpark (CLSK) Is Moving Away from Its Strategy of HODLing 100% of the BTC It Mines

Bitcoin miner CleanSpark (CLSK) is moving away from its strategy of HODLing 100% of the BTC it mines. The Henderson, Nevada-based company said it

CleanSpark (NYSE:CLSK) is adjusting its strategy to include selling a portion of the bitcoin (BTC) it mines to support its operations, the company announced Tuesday.

The Henderson, Nevada-based company, which is a major bitcoin miner with 40.2 exahash per second (EH/s) of mining power, is planning to expand its mining capacity to 50 EH/s.

CleanSpark's strategy had previously focused entirely on accumulating bitcoin, and its holdings now exceed 12,000 BTC, valued at just over $1 billion at current prices.

However, in a statement, CEO Zach Bradford explained the shift in plans: “While we remain committed to bitcoin as a long-term, hardened asset, we believe a more effective way to increase shareholder value is through a balanced approach between monetizing new production and building long-term holdings.”

As part of this balanced approach, CleanSpark also announced an increase in its credit facility with Coinbase Prime (NASDAQ:COIN) to $200 million. This move is seen as a continuation of CleanSpark's strategy to fund its operations without resorting to selling equity.

“As part of this balanced approach, we intend to further build out our diversified capital stack. In today’s market environment, we view the debt markets as the most efficient and responsible path to support accretive growth, and our strong balance sheet positions us to take full advantage of that opportunity,” Bradford added.

CleanSpark's shares edged up slightly in early trading on Tuesday, showing a modest gain compared to the broader decline in the bitcoin mining sector. The CoinShares Bitcoin Miners ETF (NYSE:WGMI), which serves as a benchmark for the sector, traded lower on Tuesday.