CleanSpark to Establish In-House Trading Desk for Bitcoin Holdings.
CleanSpark Inc., a prominent Bitcoin mining company based in the United States, is set to launch an in-house trading desk in 2024, as reported by Bloomberg on January 2nd. The move aims to optimize returns from CleanSpark's substantial Bitcoin holdings, as stated by the company's CEO, Zachary Bradford.
Key Points:
Strategic In-House Trading: CleanSpark believes that managing the trading desk internally is the most financially prudent approach, leveraging its considerable Bitcoin balance for strategic decision-making.
Bitcoin Holdings: In December, CleanSpark disclosed possession of 2,575 BTC, valued at approximately $116 million in current market conditions.
Regulated Crypto Offerings: The company plans to formulate trading strategies based on regulated crypto offerings, including option contracts traded on the Chicago Mercantile Exchange and its affiliates.
Custody and Security: While considering moving a small amount into different accounts, CleanSpark emphasizes maintaining cold storage custody with reputable holders such as Coinbase, using segregated accounts to enhance security.
Industry Trends: CEO Zachary Bradford foresees a trend among Bitcoin miners establishing in-house trading desks, emphasizing the advantages of managing risks and closely monitoring the trading activities.
Financial Performance: CleanSpark's share price experienced a remarkable increase of around 440% in 2023, reaching approximately $11, elevating the firm's market capitalization to $2 billion.
The move by CleanSpark aligns with an industry-wide trend, reflecting a strategic approach to navigate the dynamics of the cryptocurrency market.