One of the biggest publicly traded Bitcoin mining firms in the US, CleanSpark Inc., plans to introduce an in-house trading desk this year to optimize the profits of its cryptocurrency holdings.
The corporation is reportedly looking to use its more than 2,500 BTC amid a spike in cryptocurrency values because of the anticipated approval of a Bitcoin ETF, according to Bloomberg.
CleanSpark CEO Zachary Bradford stated in an interview, “We really think that doing it ourselves is the best way, especially with the large Bitcoin balance we have. Doing it internally just makes financial sense.”
Many Bitcoin miners have already made money from their token holdings by using cryptocurrency derivatives like options. As of November 30, Marathon Digital Holdings Inc. has more than 14,000 unrestricted Bitcoin.
The company makes money by selling Bitcoin called options contracts. With calls, the contract buyer gets the option to acquire the underlying asset at a predetermined price within a predetermined window of time.
“I think what will happen is miners like ourselves will start having trading desks in-house,” Bradford stated. “That way, you can manage it with your own risk profiles and expertise and keep a really close eye on it.”
Last year, CleanSpark’s stock shot up 440% to over $11, bringing the company’s market valuation to about $2 billion. In 2022, the stock fell by about 79% as the cryptocurrency industry as a whole fell.
CleanSpark intends to develop methods based on regulated cryptocurrency offers, including the CME’s or its affiliates’ option contracts. Bradford stated, “We will keep the cold storage custody with holders like Coinbase with segregated accounts, but we might have to move a small amount into different accounts.”
Similar to other Bitcoin-related businesses, Cleanspark saw a financial boom last year, with its shares rising from more than $2 in January to more than $13 in December.
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