CleanSpark Responds to Market Turmoil with Bitcoin Sales
This move was made due to declining mining stock prices and the post-halving profitability squeeze. Additionally, Bitdeer is prioritizing self-mining and domestic hardware production in response to the recent geopolitical pressures and reduced equipment demand. Across the globe, El Salvador's Bitcoin experiment faces challenges as 89% of its registered Bitcoin service providers have failed to meet certain compliance standards under the nation's Bitcoin Law. This raised some concerns about the country's crypto future amid IMF pressure and possible legal changes.
CleanSpark Aims for Financial Independence
CleanSpark, a leading US Bitcoin mining company, announced on April 15 that it will begin selling a portion of the Bitcoin it earns each month to support its operations and become financially self-sufficient. Along with this shift in strategy, the company also secured a $200 million credit facility backed by Bitcoin through an agreement with Coinbase Prime, which is the institutional brokerage arm of the cryptocurrency exchange.
CleanSpark’s announcement (Source: PR Newswire)
According to CEO Zach Bradford, the combination of monthly Bitcoin sales and the newly established credit line are major milestones for the company. He stated that CleanSpark “achieved escape velocity,” which means that it can now fund its operations, expand its Bitcoin treasury, and support growth using operational cash flow instead of relying on external funding.
To facilitate the sales, CleanSpark launched an institutional Bitcoin trading desk. The move came during a turbulent time for Bitcoin mining companies, many of which have faced sharp declines in stock prices in the first quarter of 2025. Shares of the CoinShares Crypto Miners ETF (WGMI), which tracks a broad array of mining companies, plunged by more than 40% since the beginning of the year.
CoinShares Crypto Miners ETF (Source: Morningstar)
According to Bradford, CleanSpark’s decision is a departure from the company’s previous near-total hold strategy that was adopted in mid-2023. Given the volatile market environment, he said it was time to resume selling part of the firm’s monthly production to support ongoing operations.
The broader downturn in mining stocks has been attributed by JP Morgan analysts to falling cryptocurrency prices and mounting pressure after the April 2024 Bitcoin halving, which cut mining rewards in half. Compounding these challenges are new geopolitical risks. President Donald Trump’s recent proposal for sweeping tariffs on US imports heightened concerns among miners who depend heavily on foreign-manufactured, specialized mining equipment.
Bradford believes CleanSpark’s ability to fund itself internally will set it apart from competitors that still rely on equity dilution or increased debt to maintain and grow their Bitcoin holdings. However, other mining firms are also adjusting to the new market realities.
Bitdeer Shifts to Self-Mining
Mining company Bitdeer is also shifting its focus toward expanding self-mining operations and ramping up US-based hardware production as global supply chains face renewed pressure from geopolitical tensions. According to an April 15 report by Bloomberg, the company started prioritizing mining Bitcoin directly in response to reduced demand for its mining hardware from other firms. Jeff LaBerge, head of capital markets and strategic initiatives at Bitdeer, confirmed that the company’s strategy now centers on its own mining efforts.
In addition to self-mining, Bitdeer plans to scale up domestic hardware manufacturing later this year to align with US President Donald Trump’s proposals for sweeping tariffs on foreign imports and a push to revive American manufacturing. LaBerge explained that the company’s move to bring jobs and production back to the US has been in the works for some time and is now gaining more momentum due to the uncertain trade environment.
The shift was announced as the entire Bitcoin mining sector faces a challenging year. After the latest Bitcoin halving, which slashed mining rewards from 6.25 BTC to 3.125 BTC per block, miners across the board have struggled to maintain profitability. Bitdeer’s own stock plummeted by around 28% in February after reporting lower-than-expected earnings for the fourth quarter of 2024. The company’s chief strategy officer, Harris Bassett, attributed the downturn primarily to the halving and broader market conditions.
Data from JPMorgan shows that since the halving, average mining revenues and gross profits dropped by 46% and 57% respectively, while miner profitability, measured by hash price, has approached historic lows. In an effort to counter these declines, Bitdeer launched a line of energy-efficient Bitcoin mining rigs in 2024, but sales fell short of expectations and failed to offset broader losses in other business units.
Bitcoin Hashprice Index (Source: Hashrate Index)
Despite the uncertainty, there are signs of shifting dynamics in the mining industry. The Trump-backed American Bitcoin mining operation is reportedly exploring a potential initial public offering, which could signal growing political and economic interest in reshaping the domestic crypto mining landscape.
El Salvador’s Bitcoin Law Leaves Firms Behind
It’s not only Bitcoin mining companies that are facing issues at the moment. Only 20 out of 181 Bitcoin service providers registered with El Salvador’s central bank are currently operational, according to data cited by local media outlet El Mundo.
This means just 11% of the registered firms meet the requirements laid out under the country’s landmark Bitcoin Law, which mandates strict financial oversight and compliance measures. The remaining 161 providers are classified as non-operational, with at least 22 having failed to meet the majority of legal obligations.
El Salvador’s Bitcoin Law made the country the first in the world to adopt Bitcoin as legal tender alongside the US dollar, and it sets out very rigorous standards for service providers. These include maintaining an Anti-Money Laundering (AML) program, accurate financial records, and a cybersecurity strategy that is tailored to the nature of their services. The data reveals that 89% of these companies fell short of these requirements, leaving only a handful of firms compliant.
Among those deemed operational are the government-backed Chivo Wallet and private entities like Crypto Trading & Investment and Fintech Américas. While these few companies continue to serve the market, the majority have struggled to keep pace with regulatory expectations.
The report was shared during a time when El Salvador faces increasing pressure from the International Monetary Fund (IMF), which recently approved a $1.4 billion loan deal with the country. As part of the agreement, El Salvador committed to limiting public sector use of Bitcoin and ensuring that taxes will be paid in US dollars. Despite this, President Nayib Bukele stated that the government will continue purchasing Bitcoin, which contradicts certain key elements of the IMF deal.
The tension because of this sparked speculation about the future of Bitcoin’s legal status in El Salvador. According to Bitcoin educator John Dennehy, a legislative rollback that could change Bitcoin’s legal status is expected to take effect on April 30, which raises some questions about the long-term sustainability of the country’s crypto experiment.
CleanSpark Responds to Market Turmoil with Bitcoin Sales
This move was made due to declining mining stock prices and the post-halving profitability squeeze. Additionally, Bitdeer is prioritizing self-mining and domestic hardware production in response to the recent geopolitical pressures and reduced equipment demand. Across the globe, El Salvador's Bitcoin experiment faces challenges as 89% of its registered Bitcoin service providers have failed to meet certain compliance standards under the nation's Bitcoin Law. This raised some concerns about the country's crypto future amid IMF pressure and possible legal changes.
CleanSpark Aims for Financial Independence
CleanSpark, a leading US Bitcoin mining company, announced on April 15 that it will begin selling a portion of the Bitcoin it earns each month to support its operations and become financially self-sufficient. Along with this shift in strategy, the company also secured a $200 million credit facility backed by Bitcoin through an agreement with Coinbase Prime, which is the institutional brokerage arm of the cryptocurrency exchange.
CleanSpark’s announcement (Source: PR Newswire)
According to CEO Zach Bradford, the combination of monthly Bitcoin sales and the newly established credit line are major milestones for the company. He stated that CleanSpark “achieved escape velocity,” which means that it can now fund its operations, expand its Bitcoin treasury, and support growth using operational cash flow instead of relying on external funding.
To facilitate the sales, CleanSpark launched an institutional Bitcoin trading desk. The move came during a turbulent time for Bitcoin mining companies, many of which have faced sharp declines in stock prices in the first quarter of 2025. Shares of the CoinShares Crypto Miners ETF (WGMI), which tracks a broad array of mining companies, plunged by more than 40% since the beginning of the year.
CoinShares Crypto Miners ETF (Source: Morningstar)
According to Bradford, CleanSpark’s decision is a departure from the company’s previous near-total hold strategy that was adopted in mid-2023. Given the volatile market environment, he said it was time to resume selling part of the firm’s monthly production to support ongoing operations.
The broader downturn in mining stocks has been attributed by JP Morgan analysts to falling cryptocurrency prices and mounting pressure after the April 2024 Bitcoin halving, which cut mining rewards in half. Compounding these challenges are new geopolitical risks. President Donald Trump’s recent proposal for sweeping tariffs on US imports heightened concerns among miners who depend heavily on foreign-manufactured, specialized mining equipment.
Bradford believes CleanSpark’s ability to fund itself internally will set it apart from competitors that still rely on equity dilution or increased debt to maintain and grow their Bitcoin holdings. However, other mining firms are also adjusting to the new market realities.
Bitdeer Shifts to Self-Mining
Mining company Bitdeer is also shifting its focus toward expanding self-mining operations and ramping up US-based hardware production as global supply chains face renewed pressure from geopolitical tensions. According to an April 15 report by Bloomberg, the company started prioritizing mining Bitcoin directly in response to reduced demand for its mining hardware from other firms. Jeff LaBerge, head of capital markets and strategic initiatives at Bitdeer, confirmed that the company’s strategy now centers on its own mining efforts.
In addition to self-mining, Bitdeer plans to scale up domestic hardware manufacturing later this year to align with US President Donald Trump’s proposals for sweeping tariffs on foreign imports and a push to revive American manufacturing. LaBerge explained that the company’s move to bring jobs and production back to the US has been in the works for some time and is now gaining more momentum due to the uncertain trade environment.
The shift was announced as the entire Bitcoin mining sector faces a challenging year. After the latest Bitcoin halving, which slashed mining rewards from 6.25 BTC to 3.125 BTC per block, miners across the board have struggled to maintain profitability. Bitdeer’s own stock plummeted by around 28% in February after reporting lower-than-expected earnings for the fourth quarter of 2024. The company’s chief strategy officer, Harris Bassett, attributed the downturn primarily to the halving and broader market conditions.
Data from JPMorgan shows that since the halving, average mining revenues and gross profits dropped by 46% and 57% respectively, while miner profitability, measured by hash price, has approached historic lows. In an effort to counter these declines, Bitdeer launched a line of energy-efficient Bitcoin mining rigs in 2024, but sales fell short of expectations and failed to offset broader losses in other business units.
Bitcoin Hashprice Index (Source: Hashrate Index)
Despite the uncertainty, there are signs of shifting dynamics in the mining industry. The Trump-backed American Bitcoin mining operation is reportedly exploring a potential initial public offering, which could signal growing political and economic interest in reshaping the domestic crypto mining landscape.
El Salvador’s Bitcoin Law Leaves Firms Behind
It’s not only Bitcoin mining companies that are facing issues at the moment. Only 20 out of 181 Bitcoin service providers registered with El Salvador’s central bank are currently operational, according to data cited by local media outlet El Mundo.
This means just 11% of the registered firms meet the requirements laid out under the country’s landmark Bitcoin Law, which mandates strict financial oversight and compliance measures. The remaining 161 providers are classified as non-operational, with at least 22 having failed to meet the majority of legal obligations.
El Salvador’s Bitcoin Law made the country the first in the world to adopt Bitcoin as legal tender alongside the US dollar, and it sets out very rigorous standards for service providers. These include maintaining an Anti-Money Laundering (AML) program, accurate financial records, and a cybersecurity strategy that is tailored to the nature of their services. The data reveals that 89% of these companies fell short of these requirements, leaving only a handful of firms compliant.
Among those deemed operational are the government-backed Chivo Wallet and private entities like Crypto Trading & Investment and Fintech Américas. While these few companies continue to serve the market, the majority have struggled to keep pace with regulatory expectations.
The report was shared during a time when El Salvador faces increasing pressure from the International Monetary Fund (IMF), which recently approved a $1.4 billion loan deal with the country. As part of the agreement, El Salvador committed to limiting public sector use of Bitcoin and ensuring that taxes will be paid in US dollars. Despite this, President Nayib Bukele stated that the government will continue purchasing Bitcoin, which contradicts certain key elements of the IMF deal.
The tension because of this sparked speculation about the future of Bitcoin’s legal status in El Salvador. According to Bitcoin educator John Dennehy, a legislative rollback that could change Bitcoin’s legal status is expected to take effect on April 30, which raises some questions about the long-term sustainability of the country’s crypto experiment.