Publicly traded bitcoin mining company, Cleanspark, recently made headlines by reserving 4.4 exahash per second (EH/s) of Bitmain's advanced S21 Antminers. This batch, estimated to be worth around $61.6 million, comes out to approximately $14 per terahash per second (TH/s).
Details of Cleanspark's Acquisition
Cleanspark, listed on Nasdaq under the ticker CLSK, is a U.S.-based bitcoin mining firm. The company recently announced the acquisition of 4.4 EH/s of the latest S21 miners from the mining equipment giant, Bitmain. Although specific details were not publicly disclosed, the shipment suggests that the Bitmain S21 Antminers have an efficiency quotient of 17.5 joules per terahash (J/TH). This indicates that the purchase likely included the air-cooled S21 models.
Understanding the Value of the Acquisition
The air-cooled S21 models produce 200 TH/s each, which means that the company needed 22,000 units to reach the 4.4 EH/s target. These devices collectively worth $61.6 million, according to Cleanspark. Bitmain will cover the remaining 20% of the cost, with the balance deferred until a year after delivery. This arrangement implies an initial payment of $11.2 per TH/s. The company confirmed that shipments are expected to start in January 2024.
The Impact of the Acquisition on the Market
Cleanspark's acquisition follows Iris Energy's procurement of 1.4 EH/s of Bitmain's S21 hardware for $19.6 million. Bitcoin mining companies are preparing for the upcoming reward halving, which is only 196 days away. Enhancing the joules per terahash ratio is vital for increasing revenue channels.
CEO's Remarks on the Acquisition
"Incorporating the S21 into our mining operations aligns with our dedication to using the most efficient mining technology," stated Zach Bradford, CEO of Cleanspark.
Public Response to the Acquisition
The acquisition of 4.4 EH/s of Bitmain's new S21 miners by Cleanspark has sparked varied reactions in the crypto community. What's your take on this development? Do share your views and thoughts on this subject.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. But, this type of investment comes with its own set of disadvantages.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. Insurance companies will usually require that you have at least $500,000. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit how many ounces you can keep. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. They enable you to establish a contract with an expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does include coverage for damage due to natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must hold them as long as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). The plan should also include information about how much you are willing to invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
You should consult a financial planner before opening a Gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
What are some of the benefits of a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It's tax-deferred until you withdraw it. You have complete control over how much you take out each year. There are many types and types of IRAs. Some are better suited to college savings. Others are intended for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even in economic turmoil, gold prices tends to remain relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This will ensure that you receive annual dividends.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you only pay a small percentage on your gains. Additionally, you have access to your funds at no cost whenever you need them.
Is it a good retirement strategy to buy gold?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The most popular form of investing in gold is through physical bullion bars. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How Much of Your IRA Should Be Made Up Of Precious Metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Your retirement plan provider may offer an IRA rollingover program.
No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.
Their prices are more volatile than traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example, and Risk Metrics
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
Investing in gold vs. investing in stocks
These days, it might seem quite risky to invest your money in gold. This is because most people believe that it is no longer economically profitable to invest gold. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. However, investing in gold can still provide significant benefits. Here are some examples.
Gold is one of the oldest forms of currency known to man. There are records of its use going back thousands of years. It was used by many people around the globe as a currency store. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. The first thing you should do when considering buying gold bullion is to decide how much you will spend per gram. You could contact a local jeweler to find out what their current market rate is.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. But, if your goal is to make long-term investments in gold, this might be worth considering. If you sell your gold for more than you paid, you can make a profit.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We recommend that you investigate all options before making any major decisions. Only then can you make informed decisions.
By: Jamie Redman
Title: Cleanspark Acquires 4.4 EH/s of Bitmain's New S21 Miners
Sourced From: news.bitcoin.com/cleanspark-acquires-4-4-eh-s-of-bitmains-new-s21-antminers-readies-for-bitcoin-reward-halving/
Published Date: Thu, 12 Oct 2023 06:30:57 +0000