Bitcoin Mining Company CleanSpark to Establish In-House Trading Desk
CleanSpark Inc, a Bitcoin mining company, plans to launch its own trading desk in 2024. The move is aimed at maximizing returns from the company’s significant Bitcoin holdings.
The CEO of CleanSpark, Zachary Bradford, highlighted the financial benefits of this decision. According to Bradford, “It just makes financial sense to do it in-house.”
Mining Competitors Leveraging Cryptocurrency Derivatives
Other Bitcoin mining competitors, including Marathon, have already started using cryptocurrency derivatives to utilize their Bitcoin reserves.
As per Bitcoin Treasuries, CleanSpark held 143 BTC in September 2022. However, that number has increased to 2,575 Bitcoin as of November 2023. In comparison, Marathon holds 13,396 BTC during the same period.
Predicting a Trend of In-House Trading Desks
Bradford anticipates a trend where mining companies will establish their own in-house trading desks. He believes this approach allows for more personalized risk management and oversight.
CleanSpark plans to focus on regulated crypto offerings such as option contracts traded on the Chicago Mercantile Exchange (CME) or its affiliates. While some funds may be shifted between accounts, the majority of their Bitcoin will remain in cold storage custody with entities like Coinbase providing segregated accounts.
About CleanSpark Inc
CleanSpark is an independent Bitcoin mining company founded in 2014. It operates around five data centers in Georgia with a total developed capacity of 230 megawatts (MW).
On December 8, JP Morgan downgraded CleanSpark to ‘Neutral’ from ‘Overweight’. However, the Nasdaq-listed company is currently leaning towards a ‘Buy’ rating on the analytics website.
Hot Take: Bitcoin Mining Companies Exploring In-House Trading for Enhanced Returns
Bitcoin mining companies like CleanSpark are looking to establish their own trading desks to maximize returns from their Bitcoin holdings. This trend is expected to continue as mining competitors, including Marathon, have already started leveraging cryptocurrency derivatives for their Bitcoin reserves. By incorporating in-house trading desks, these companies can have more tailored risk management and oversight. CleanSpark specifically plans to focus on regulated crypto offerings and will keep the majority of its Bitcoin in cold storage custody. Overall, this move signifies the growing importance of trading strategies and financial prudence in the Bitcoin mining industry.
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