One US-based Bitcoin miner that aims to get there is CleanSpark. Their intention to do this is by selling 50% of their monthly Bitcoin revenues. This decision is underpinned by recently established credit facility of up to $200 million through Memorandum of Understanding with Coinbase Prime. The credit facility is backed by Bitcoin.
CleanSpark’s tactical pivot consists of selling at least some of the BTC it generates through its mining operations. The firm’s ultimate goal is to use these property sales to pay for their operational expenses and growth. This makes them unique among their industry counterparts, whose go-to funding sources are often equity dilution or higher leverage.
This week, CleanSpark locked in a new $200 million credit facility with a revolving credit line under the agreement with Coinbase Prime. Coinbase Prime is the institutional brokerage division of the crypto exchange. This funding offers CleanSpark critical resources as the company continues its march toward sustained, profitable independence.
"We believe this is the right time to evolve from a nearly 100% hold strategy adopted in mid-2023 and move back using a portion of our monthly production to support operations," - Bradford
CleanSpark’s choice to pursue fiscal self-sustainability will put it ahead of its peers, the company hopes. By funding its operations through operations funded by its Bitcoin earnings, CleanSpark hopes to limit remaining dependence on external funding sources.
"achieved escape velocity — the ability to self-fund operations, augment our bitcoin treasury, and contribute to expansion capital through operational cash flow" - Zach Bradford, CEO of CleanSpark
The company’s long-term direction toward financial self-sufficiency is a smart strategic choice that will set the company apart from other companies. These are companies that, according to Bradford,
"who continue to rely on equity dilution to fund operating costs or increased leverage to grow their Bitcoin reserves" - Bradford
