CleanSpark Ends Coinmint Colocation to Cut Bitcoin Mining Costs
CleanSpark (NASDAQ: CLSK) is set to terminate its bitcoin mining colocation contract with New York-based Coinmint, which has been charging a hosting fee of approximately $0.065/kWh.
In an SEC filing on Friday, CleanSpark noted that it has mutually agreed with Coinmint not to renew the colocation agreement, which is due to expire on January 1, 2025.
CleanSpark initially entered a hosting arrangement for 50 megawatts of capacity with Coinmint in July 2021. At that time, this arrangement represented a notable portion of CleanSpark’s mining operations.
However, over the past three years, CleanSpark has expanded its proprietary infrastructure, rendering the Coinmint hosting arrangement less critical. In the second quarter of 2024, the hosted miners contributed 8.9% of CleanSpark’s bitcoin production.
According to CleanSpark’s Q2 earnings report, the company incurred an energy cost of $0.048/kWh for its owned facilities, compared to $0.063/kWh for its hosted miners at Coinmint, resulting in a weighted average energy cost of $0.0494 per kWh.
During Q2, CleanSpark had 1.51 EH/s of realized hashrate hosted by Coinmint, utilizing about 47.2 megawatts of power capacity. This translates to a fleet efficiency of 30 J/TH, leading to a daily hashcost of $46.8/PH/s at the $0.063/kWh hosting rate. With bitcoin’s hashprice just below $45/PH/s, CleanSpark appears to be barely breaking even with the hosted miners at Coinmint, if not incurring a gross loss on the book.
