The global cryptocurrency mining landscape is rapidly changing. In a recent development, Cleanspark, a renowned bitcoin mining corporation, has confirmed a significant reservation of 4.4 exahash per second (EH/s) of Bitmain's latest S21 Antminers. This procurement, valued at an estimated $61.6 million, equates to $14 for each terahash per second (TH/s).
Details of the Acquisition
Recognized as a leading player in the public market, Cleanspark is a U.S.-based bitcoin mining company. The firm has publicized its acquisition of 4.4 EH/s of the newly launched S21 miners from Bitmain, a prominent mining equipment manufacturer. Although specific details were not disclosed, it is inferred that the S21 Antminers acquired by Cleanspark have an efficiency ratio of 17.5 joules per terahash (J/TH). This efficiency ratio suggests the procurement likely included the air-cooled S21 models.
The Implications of the S21 Acquisition
The air-cooled S21 models are known for their high yield, producing 200 TH/s each. To achieve the 4.4 EH/s target, Cleanspark would require approximately 22,000 units. The total value of these units is estimated at $61.6 million. Bitmain is financing the remaining 20% of the acquisition cost, with the balance due a year after delivery. This arrangement translates to an initial payment of $11.2 per TH/s. The company has announced that shipments are expected to begin in January 2024.
Comparing Other Industry Acquisitions
Cleanspark's significant acquisition follows closely on the heels of Iris Energy's procurement of 1.4 EH/s of Bitmain's S21 hardware for $19.6 million. As the anticipated reward halving event, just 196 days away, approaches, Bitcoin mining companies are preparing by improving their joules per terahash ratio. This strategic move is essential for increasing revenue streams in an increasingly challenging environment.
Aligning with Operational Efficiency
The integration of the S21 into Cleanspark's mining operations is an intentional move towards utilizing the most efficient mining technology. Zach Bradford, CEO of Cleanspark, expressed his company's commitment on Wednesday, stating, "Integrating the S21 into our mining operations is in line with our commitment to using the most efficient mining technology." The acquisition of the S21 miners from Bitmain is a strategic move that will further position Cleanspark as a leader in the bitcoin mining industry.
What are your thoughts on Cleanspark's acquisition of 4.4 EH/s of Bitmain's new S21 miners? We welcome you to share your thoughts and opinions on this topic below.
Frequently Asked Questions
What is the value of a gold IRA
Many benefits come with a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This allows you to easily transition if your retirement is early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. Gold has historically been volatile. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Are you trying to find safety or growth? Only then will you be able make informed decisions.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. One ounce won't be enough to meet all your needs. Depending on the purpose of your gold, you might need more than one ounce.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even live with just one ounce. But, those funds will not allow you to buy anything.
Do you need to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. This includes any loss of investments from theft, fire, flood or other circumstances.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Remember that you will not see any returns unless you are retired if you open an Account. Don't forget the future!
How much should precious metals make up your portfolio?
This question can only be answered if we first know what precious metals are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is not affected by inflation or deflation.
In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Should You Invest in Gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you are unsure of which option to invest in, consider both.
Not only is it a safe investment but gold can also provide potential returns. This makes it a worthwhile choice for retirees.
Gold is more volatile than most other investments. As a result, its value changes over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold is its tangible value. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be carried.
You can always access your gold if it is stored in a secure place. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when stocks fall.
Another advantage to investing in gold is the ability to sell it whenever you wish. Like stocks, you can sell your position anytime you need cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't purchase too much at once. Start with a few ounces. You can add more as you need.
Keep in mind that the goal is not to quickly become wealthy. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are disadvantages to this type investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do withdraw funds, you'll need to pay a penalty.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You might be required to buy insurance that covers losses up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the number of ounces of gold that you can own. Some providers allow you to choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. The price of physical gold is higher than that of gold futures. Futures contracts allow you to buy gold with more flexibility. They allow you to set up a contract with a specific expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. However, it does cover damage caused by natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs will not be covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians aren't allowed to sell your assets. They must instead keep them for as long as you ask.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want 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. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How is gold taxed in an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
Gold can be used as collateral for loans. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. This is not always possible. They may hold on to it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
What is a Precious Metal IRA, and how can you get one?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers only to the actual metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This ensures that you will receive dividends each and every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you only pay a small percentage on your gains. Additionally, you have access to your funds at no cost whenever you need them.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example and Risk Metrics
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Because of its intrinsic value, it was also widely traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This led to a decline in demand for foreign currencies, which caused their price to increase. The price of gold dropped because the United States began to mint large quantities of gold coins. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They decided to sell some excess gold to Europe in order to do this.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries started to accept paper money as a substitute for gold after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
By: Jamie Redman
Title: Unveiling Cleanspark's Acquisition of Bitmain's S21 Antminers
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