CleanSpark Inc. Embraces In-House Trading for Bitcoin Optimization
United States-based Bitcoin miner CleanSpark Inc. is making a significant stride in the cryptocurrency sector by planning to establish an in-house trading desk. The move, scheduled for sometime in 2024, aims to maximize returns from the company’s substantial Bitcoin holdings.
CEO Zachary Bradford on the Financial Logic Behind the Move
Zachary Bradford, the CEO of CleanSpark, explained the rationale behind this strategic decision to Bloomberg. “With the large Bitcoin balance we have, it just makes financial sense to do it in-house,” said Bradford. As of the end of November, CleanSpark reported holding 2,575 BTC, valued at approximately $116 million.
Navigating the Crypto Market with Regulated Strategies
CleanSpark plans to leverage regulated crypto offerings in their trading strategies. This includes options contracts traded on platforms like the Chicago Mercantile Exchange. “While we may move a small amount into different accounts, our focus remains on maintaining cold storage custody with reliable holders such as Coinbase, ensuring segregated accounts,” Bradford added.
Future Trends in Bitcoin Mining and Trading
Bradford anticipates a trend where more Bitcoin miners will establish in-house trading desks. This approach allows for closer management of assets, tailored risk profiles, and leveraging specific expertise in the field.
Impact on CleanSpark’s Market Performance
CleanSpark’s share price saw a remarkable turnaround in 2023, with an approximate 440% increase to around $11, boosting the company’s market cap to $2 billion. This recovery followed a near 80% fall in 2022, a tumultuous year for the cryptocurrency industry marked by the collapse of FTX and a significant market cap reduction.
In summary, CleanSpark Inc.’s decision to launch an in-house trading desk is a strategic move to optimize its Bitcoin management, reflecting a growing trend among Bitcoin miners. With a focus on regulated crypto offerings and robust security measures, CleanSpark is poised to navigate the dynamic cryptocurrency market effectively.