Shares of bitcoin mining company CleanSpark Inc. (CLSK) were rising premarket Thursday after the company announced that it has purchased 2,400 new rigs that will help improve its mining efficiency.
The Salt Lake City company purchased more S19-Pro rigs for delivery in the coming month in order to increase the overall hash rate, or processing power, of its operations.
"This is an additional step in making our mining operation more efficient, which further aligns with our previously stated objective of operating all company-owned facilities at or near carbon neutral," CEO Zach Bradford.
CleanSpark shares rose 3.1% to $15.18 per share premarket Thursday.
Mining is the method by which crypto transactions are processed, and as a reward for processing transactions miners are given new bitcoin. Hash rate refers to the amount of computing power being contributed to the network at any given time.
CleanSpark says that its current energy mix is at 95% carbon-free power with a goal to operate all company-owned facilities at or near carbon neutral.
The company also says that it plans to sell its prior-generation rigs at "substantial gains" because the market and global increase in bitcoin prices has increased demand.
"This transition to the upgraded equipment is expected to increase our hash rate capacity to over 400 PH/s (petahash per second) while using the same amount of power that we previously used to generate 330 PH/s," Bradford said.
CleanSpark's announcement comes a day after Tesla (TSLA) - Get Report CEO Elon Musk said that the company will no longer accept payments in bitcoin, citing the environmental impact of bitcoin mining for the decision, sparking a sharp decline in the price of bitcoin.