As global economic conditions shift, two significant developments are shaping financial markets. In the United States, Bitcoin miner CleanSpark has expanded its corporate treasury, adding to its position as one of the largest BTC holders, even as the industry faces challenges from declining cryptocurrency prices and the upcoming Bitcoin halving. Meanwhile, in China, policymakers have ramped up fiscal and monetary stimulus to counter slowing growth and trade tensions with the US, a move that could increase global liquidity and potentially impact risk assets like Bitcoin.
CleanSpark Expands Bitcoin Treasury Amidst Industry Challenges and Macroeconomic Uncertainty
CleanSpark, a leading Bitcoin mining firm, has strengthened its position as one of the largest corporate Bitcoin holders after adding to its BTC treasury in February. The company revealed on March 5 that its Bitcoin holdings grew by approximately 6% during the month.
According to CleanSpark’s latest monthly report, the company mined a total of 624 BTC in February, valued at over $55 million at Bitcoin’s spot price of approximately $89,000 on March 5. While the firm sold a small fraction—2.73 BTC—at an average price of more than $95,000 per coin, it added the majority of the mined Bitcoin to its growing treasury. As of Feb. 28, CleanSpark’s total Bitcoin reserves stood at 11,177 BTC, reinforcing its position as the fifth-largest corporate Bitcoin holder globally, per data from BitcoinTreasuries.NET.
While many competitors in the mining space are diversifying into adjacent revenue streams, such as high-performance computing for artificial intelligence (AI) models, CleanSpark remains committed to a pure-play Bitcoin mining strategy. The company’s CEO, Zach Bradford, emphasized that CleanSpark’s strong February results demonstrate the effectiveness of its focused approach.
This strategy contrasts sharply with other mining firms that are branching into AI-driven services, cloud computing, and the sale of specialized ASIC chips to supplement their mining revenue. By doubling down on Bitcoin accumulation, CleanSpark aligns itself with a model previously championed by MicroStrategy, which has made significant headlines for its aggressive BTC accumulation strategy.
Financial Growth Amid Favorable Market Conditions
CleanSpark has enjoyed a surge in revenue and profitability, thanks to lower production costs and the rising price of Bitcoin, which saw renewed investor enthusiasm following Donald Trump’s election win in November.
In its first fiscal quarter of 2025, which ended on Dec. 31, 2024, CleanSpark reported:
$162.3 million in revenue, marking a 120% year-over-year increase.
Net profits of $241.7 million (or $0.85 per share), a significant jump from $25.9 million one year earlier.
An additional 1,000 BTC added to its treasury, strengthening its Bitcoin reserves.
The bullish market conditions in late 2024 contributed to this impressive growth, as Bitcoin prices soared in anticipation of a post-election economic shift and growing institutional adoption.
Despite CleanSpark’s strong financial performance, the broader crypto mining industry faces mounting challenges. The company’s stock has declined more than 10% year-to-date, reflecting concerns over declining Bitcoin prices and the impact of the upcoming Bitcoin halving in April 2025.
Bitcoin’s network-wide hashrate has also been climbing steadily, making it more difficult and costly for miners to generate new BTC. The looming halving event, which will reduce mining rewards by 50%, presents a further challenge for miners who rely heavily on block rewards for revenue.
Additionally, macroeconomic uncertainties—including a potential trade war—have introduced volatility into financial markets. Since assuming office in January, President Trump has announced 25% tariffs on Canada and Mexico, causing uncertainty in global trade dynamics. Such economic policies could influence investor sentiment in both traditional markets and cryptocurrencies.
While CleanSpark remains fully committed to Bitcoin mining, many of its peers are pivoting toward new revenue streams to hedge against declining mining profitability.
Several major Bitcoin mining firms are:
Leasing out high-performance computing power to AI companies.
Selling customized ASIC microchips optimized for AI processing.
Offering cloud-based mining solutions to retail investors.
These alternative business models could help offset the anticipated drop in mining revenues post-halving, allowing miners to remain competitive in a rapidly evolving industry.
Despite the challenges facing the mining industry, CleanSpark continues to reinforce its position as a dominant player with one of the largest corporate BTC treasuries. Its decision to hold rather than sell most of its mined Bitcoin aligns with the long-term investment strategy seen among some of the most successful BTC-focused firms.
The coming months will be crucial for CleanSpark, as it navigates:
The impact of the Bitcoin halving on mining profitability.
Potential market volatility stemming from US economic policies.
The evolving role of AI in the mining industry, which may put pressure on traditional mining-focused business models.
For now, CleanSpark remains steadfast in its Bitcoin-first approach, betting that BTC’s long-term appreciation will outweigh short-term market fluctuations. Whether this strategy continues to pay off post-halving remains to be seen.
China’s Stimulus Expansion Sparks Bitcoin Speculation Amid Global Liquidity Surge
In other news, China has intensified its fiscal and monetary stimulus measures, unveiling a series of economic initiatives on Wednesday aimed at boosting consumption and mitigating the effects of a deepening trade war with the United States. The latest policy moves could have far-reaching implications for global liquidity, potentially influencing risk assets, including Bitcoin (BTC).
Historically, expansive stimulus policies from major global economies have coincided with bullish cycles in cryptocurrency markets. A report by S&P Global highlights that both bull and bear market trends in digital assets often correlate with ultra-loose monetary policy and subsequent tightening cycles. If past trends hold, China’s decision to inject additional liquidity into its financial system may create tailwinds for Bitcoin and other alternative assets.
In the past, China’s aggressive monetary interventions have resulted in significant capital flows into alternative markets, including cryptocurrencies. This was evident in September 2024, when Bitcoin surged 12.3%, marking one of its strongest September performances on record. This rally coincided with China’s last major stimulus effort, which included:
Lowering short-term interest rates
Reducing banks' reserve requirements
Supporting the housing and equity markets
Notably, TradingView data shows a consistent positive correlation between Bitcoin’s price action and the People’s Bank of China’s (PBOC) balance sheet over the past eight years. As China expands its stimulus once again, investors are watching closely to see if Bitcoin will respond similarly.
A spokesperson for Nexo, a major crypto lending platform, commented on the potential market effects of China’s latest stimulus.
“In previous instances when China has ramped up monetary stimulus and injected excess liquidity into the system, such as in 2015 and 2020, excess liquidity found its way into alternative assets,” they said. “This could have broader implications for global markets, increasing appetite across equities and alternative assets, including Bitcoin.”
Despite the potential for capital inflows into crypto, the Nexo representative also warned that China’s strict regulatory environment could limit direct participation in digital assets. Instead, liquidity may be absorbed by state-backed financial instruments or redirected into traditional safe-haven assets such as gold.
On Wednesday, China’s annual Government Work Report revealed key economic targets and a commitment to revitalizing private consumption:
GDP Growth Target: 5%
Fiscal Deficit Target: 4% of GDP
Monetary Policy: Expansionary, with a focus on liquidity injections
This 5% GDP growth target is in line with Beijing’s cautious approach to economic management. However, concerns remain about slowing economic momentum, as Chinese consumers remain hesitant to spend amid prolonged housing sector weakness and geopolitical uncertainties.
Aurelie Barthere, Principal Research Analyst at Nansen, emphasized that while China’s economic expansion is a positive signal, its impact on Bitcoin and broader crypto markets is less pronounced than changes in US policy.
While China’s latest stimulus push could increase global liquidity, Bitcoin’s reaction remains uncertain due to several key factors:
Regulatory Barriers: China’s strict bans on crypto trading and mining limit direct investment in digital assets. Any potential capital influx into Bitcoin would likely occur indirectly through offshore markets.
Alternative Investment Destinations: Unlike previous years, China has promoted state-backed digital assets as alternatives, which could absorb some of the liquidity that might have otherwise flowed into Bitcoin.
US Policy Influence: Despite China’s stimulus, many analysts believe that US monetary policy—particularly Federal Reserve rate decisions—holds greater weight in determining Bitcoin’s medium-term price direction.
Geopolitical Risks: The ongoing US-China trade war and potential capital controls could further complicate global investment flows, making Bitcoin’s correlation with Chinese liquidity less predictable.
Beyond crypto, China’s stimulus could positively impact global financial markets, boosting equities, commodities, and risk assets. The last major Chinese monetary expansion in 2020 contributed to a broad market rally, particularly in technology stocks and gold.
If the new wave of liquidity triggers another risk-on environment, Bitcoin could benefit, as institutional investors seek high-yield alternatives amid rising global liquidity.
However, the potential spillover effect will depend on how China’s policies unfold in the coming months and whether the government continues to expand its fiscal support measures.
Will Bitcoin React to China’s Liquidity Injection?
China’s latest stimulus measures are poised to increase global liquidity, historically a bullish signal for Bitcoin and risk assets. However, several unknowns remain, including China’s strict regulatory stance on crypto and the broader economic climate.
While past trends suggest a potential Bitcoin price boost, factors such as US monetary policy and geopolitical tensions will also play a crucial role in shaping market movements. If history repeats itself, traders and investors should be watching closely for early signs of a BTC breakout, particularly as China accelerates monetary easing.
For now, Bitcoin enthusiasts remain cautiously optimistic, waiting to see whether China’s economic rescue plan will once again send BTC soaring—or if its impact will be absorbed elsewhere in the global financial system.
