CleanSpark is pivoting to self-fund operations by selling a portion of mined Bitcoin monthly and has secured a $200 million Bitcoin-backed credit facility with Coinbase Prime. This strategy aims to improve financial stability amid market challenges, including a decline in mining stocks and impending tariffs on imports, distinguishing CleanSpark from competitors reliant on equity dilution.
CleanSpark has announced its decision to sell a portion of the Bitcoin generated from its mining operations on a monthly basis, aiming for financial self-sufficiency. This strategy was revealed on April 15, alongside the company securing a $200 million credit facility backed by Bitcoin through Coinbase Prime, the institutional arm of the crypto exchange. CEO Zach Bradford stated that these initiatives allow the company to self-fund operations while enhancing its Bitcoin treasury.
To facilitate cryptocurrency sales, CleanSpark has launched an institutional Bitcoin trading desk. This move comes amidst a challenging market for mining stocks, which have faced significant selloffs in early 2025. The CoinShares Crypto Miners ETF, which tracks a variety of Bitcoin mining stocks, has seen a decline of over 40% since the beginning of the year, according to Morningstar data.
Bradford indicated that this pivot from a nearly 100% holding strategy adopted in mid-2023 is timely, as it enables CleanSpark to utilise a portion of its Bitcoin production to support its operations. The decline in stock prices has raised the cost of capital for Bitcoin miners and may push creditors to request quicker loan repayments. Analysts at JP Morgan attribute the current downturn to falling cryptocurrency prices, further exacerbated by the Bitcoin network’s upcoming halving in April 2024, which reduces mining rewards.
In April, negative sentiment in the mining sector intensified following announcements from US President Donald Trump regarding potential tariffs on imports. As US Bitcoin miners often depend on foreign-sourced specialised mining equipment, they may be particularly affected by such trade tensions. Bradford believes CleanSpark’s self-sufficiency will set it apart from competitors who continue to dilute equity or increase debt to maintain Bitcoin reserves. Other miners, like Singapore-based Bitdeer, are also implementing significant changes, including plans to start producing mining hardware domestically in response to the anticipated tariffs.
