CleanSpark is set to scale up Bitcoin mining with $27million investment.
CleanSpark is set to acquire seven Bitcoin mining sites in Tennessee, along with related properties, for $27.5 million, as announced on September 11. The combined power capacity of these facilities is 85 megawatts (MW), equating to roughly $324,000 per MW. The company expects to complete the acquisitions by September 25.
Hash Rate Boost
CleanSpark revealed that once its latest S21 Pro miners are fully installed at these new sites, they will achieve a combined hash rate of 5 exahashes per second (EH/s), which would increase the company’s current hash rate by over 22%. CleanSpark’s CEO, Zach Bradford, stated that with the addition of these new facilities, the company could reach a total hash rate of 37 EH/s by the end of 2024. He also highlighted the progress made last week at the Dalton 4 campus, which helped push the firm’s operational hash rate past 23 EH/s.
Bradford emphasized CleanSpark’s strategy of capitalizing on favorable market conditions for mining server purchases. He explained, “As we’ve previously discussed, our timing of the market on mining server purchases intentionally locked in low prices so that we could take advantage of opportunities like this and immediately fill acquired data center space. The GRIID acquisition, our recent closing in Wyoming, and now this new transaction represents the continued execution of our growth strategy.”
Bradford also pointed out that Tennessee offers a political and energy environment similar to Georgia, where CleanSpark has already invested close to $1 billion and operates nearly 500 MW of capacity.
Stock Performance
Despite the acquisition news, CleanSpark’s stock price dropped. According to Yahoo Finance, the company’s stock (CLSK) was trading down by around 2%, at $9.19, at the time of the announcement.
Bitcoin Production
This acquisition follows CleanSpark’s recent announcement that it mined 478 BTC in August and increased its operational hash rate by 1.4 EH/s. As of August 31, the company held 7,558 BTC. CleanSpark reported, “The Company sold 2.5 bitcoin in August 2024 at an average price of approximately $56,729 per bitcoin. The average hash rate throughout the month of August was 21.3 EH/s, resulting in an average of 15.43 bitcoin mined daily, with a single-day high of 17.88.”
