Major Mining Company CleanSpark to Begin Selling Portion of Bitcoin, Transitioning to “Self-Funding Operations” Model

CleanSpark Begins Selling Portion of Bitcoin for Financial Self-Sufficiency

U.S. Bitcoin mining company CleanSpark announced on Tuesday that it will begin selling a portion of the Bitcoin obtained from its mining operations each month to achieve financial self-sufficiency.

CleanSpark stated that the company has expanded its capital strategy, including increasing its Bitcoin-backed credit line secured through an agreement with Coinbase Prime to $200 million. Additionally, the company’s digital asset management team has launched its institutional-grade Bitcoin finance department, which completed a comprehensive RFP and due diligence process across four product lines (lending, borrowing, custody, and derivatives) to select partners to support the company’s risk management and Bitcoin financial optimization strategies.

CleanSpark CEO Zach Bradford stated:

Bradford noted that CleanSpark currently holds over 12,000 Bitcoins, valued at approximately $1 billion. “We believe that now is the right time to transition from the nearly 100% holding strategy implemented since mid-2023 to utilizing a portion of our monthly output to support operations.”

Responding to Market Volatility

CleanSpark emphasized that the shift towards “self-funded operations” is occurring amidst a widespread decline in mining stocks in the first quarter of 2025. According to Morningstar data, the CoinShares Crypto Miners ETF (a publicly traded fund tracking the performance of multiple Bitcoin mining stocks) has fallen over 40% since the beginning of this year.

Lower stock prices have effectively increased the cost of capital for Bitcoin miners and may lead lenders to require faster loan repayments. JPMorgan analysts attribute the recent widespread decline in mining stocks to the drop in cryptocurrency prices, adding pressure to operating models already strained by the upcoming Bitcoin mining reward halving in April 2024.

Moreover, the massive tariff policies instituted by U.S. President Trump have further exacerbated the pressures on mining companies, as they rely on specialized mining equipment, which is often sourced from foreign manufacturers.

Bradford stated that CleanSpark continues to view Bitcoin as a long-term and resilient asset while shifting to a method that he believes can more effectively enhance shareholder value, describing it as “a balanced approach to monetizing new output while building a long-term holding.” Meanwhile, its competitors are still relying on equity dilution to cover operational costs or increasing leverage to bolster their Bitcoin reserves.

Some mining companies are also taking similar proactive measures to respond to market changes. Reports indicate that Singapore-based cryptocurrency mining company Bitdeer has announced plans to begin producing mining machines in the U.S. to mitigate the impact of anticipated import tariffs.