U.S.-based Bitcoin mining company CleanSpark Inc. has announced plans to establish its own trading desk in 2024, aimed at optimizing the returns from its Bitcoin (BTC) holdings. As reported by Bloomberg on January 2, CleanSpark's CEO Zachary Bradford emphasized the significance of leveraging the company's substantial Bitcoin balance for this venture.
Bradford explained to Bloomberg the rationale behind the decision, stating, “We do think doing it ourselves is the best approach, especially with our large Bitcoin balances. It makes financial sense to do it in-house.” As of the end of November, CleanSpark disclosed holding 2,575 bitcoins, which are valued at approximately $116 million at current prices.
The company intends to focus its trading strategies on regulated cryptocurrency products, like options contracts that are available on the Chicago Mercantile Exchange and its affiliates. Bradford mentioned that while there might be a need to transfer small amounts of funds between accounts, the company plans to entrust the cold storage custody of these funds to holders with separate accounts, such as Coinbase.
Bradford also expressed his belief that more Bitcoin mining companies will follow suit in setting up in-house trading desks. He noted that this approach allows companies to manage their assets based on their own risk profiles and expertise while maintaining close oversight. He sees this trend as a strategic move for companies within the industry.
The market has responded positively to CleanSpark's strategic developments, with shares of CleanSpark (CLSK) soaring about 440% in 2023, reaching around $11. This surge has pushed the company's market capitalization to $2 billion, as per Google Finance data. This growth has significantly recovered nearly 80% of the losses the company's stock experienced in 2022, a year marked by a major downturn in the cryptocurrency market following the FTX collapse, where the industry's market capitalization dropped to $832 billion.
