CleanSpark Announces Acquisition of Five New Bitcoin Mining Facilities in Georgia, Adding 60 MW of Infrastructure
CleanSpark announced the acquisition of five bitcoin mining facilities in Georgia for $25.8 million. These sites, with a total capacity of 60 MW, are expected to boost the company's operating hashrate to over 20 EH/s using newly purchased hardware. The facilities, ranging from 8 MW to 15 MW, will provide load balancing for local electric cooperatives. This acquisition aligns with CleanSpark's strategic growth plan, aiming for nearly 1 GW of new opportunities. The company currently manages 300 MW in Georgia, with plans to surpass 400 MW after the new sites and Sandersville project are operational. CEO Zach Bradford emphasized the importance of this milestone in scaling efficiently and sustainably.
- Acquisition of five new bitcoin mining facilities for $25.8 million.
- Total added capacity of 60 MW from new sites.
- Expected increase in operating hashrate to over 20 EH/s by month's end.
- Enhances load balancing capabilities for local electric cooperatives.
- Targets nearly 1 GW of new opportunities under analysis.
- Current infrastructure in Georgia to exceed 400 MW after new sites go live.
- Significant cash outlay of $25.8 million for acquisitions.
- Potential operational and integration challenges with new facilities.
- Dependence on local electric municipal cooperatives for load balancing.
Insights
The acquisition of five new bitcoin mining facilities for
However, it is important to consider the volatility of bitcoin prices. A downturn in the market could negate the benefits of increased mining capacity. Furthermore, the assumption of real property leases and power agreements poses both an opportunity and a risk. If managed well, these agreements can provide cost-effective power solutions. If not, they could lead to increased operational costs.
From a technological standpoint, CleanSpark's acquisition and the planned installation of the newest generation S21 pro miners are noteworthy. These miners are expected to enhance efficiency and increase the hash rate significantly. This technological upgrade aligns with industry trends where companies seek to harness more power-efficient and higher-performing mining hardware to stay competitive.
Moreover, the integration of load balancing capabilities with local EMCs is a significant advantage. This ability to curtail energy use during peak demand times demonstrates CleanSpark's commitment to sustainable operations, potentially reducing costs and enhancing their reputation in the energy-efficient mining space.
CleanSpark's continued expansion in Georgia, a state known for its favorable climate and energy costs for mining, is a strategic move. This regional focus could provide logistical and operational efficiencies. The company's ability to analyze nearly one gigawatt of new opportunities suggests an aggressive growth strategy, which could appeal to investors looking for high-growth potential.
Load balancing partnerships with EMCs enhance the company's value proposition. This capability can provide stability to local grids and potentially secure favorable energy rates, which is a critical factor in the cost-intensive bitcoin mining industry. Investors should note that while this growth is promising, the company's reliance on regional infrastructure could expose it to localized risks, such as regulatory changes or natural disasters.
The newest additions to the CleanSpark portfolio represent the leading edge of nearly 1 GW of new opportunities currently being analyzed
Acquisitions are expected to increase Company's operating hashrate to over 20 EH/s by month's end using already purchased hardware
Facilities will provide load balancing capabilities for the local electric municipal cooperatives (EMCs) in which they are located
The purchase is expected to close immediately, with the operating hashrate of the combined facilities anticipated to exceed 3.7 exahashes per second (EH/s) upon full installation of the latest generation S21 pro miners.
"Our acquisition of these five new mining sites marks a significant milestone in our strategic growth plan and represents the leading edge of nearly one gigawatt of new opportunities being analyzed by our teams," said Zach Bradford, CEO of CleanSpark. "These sites not only enhance the load balancing capabilities for the local cities we work with, but lock in the achievement of our mid-year target of achieving 20 EH/s of operating hashrate. This achievement underscores our commitment to scaling efficiently and sustainably and we are excited to bring these facilities into the CleanSpark way of mining bitcoin. We are confident in our continued ability to drive shareholder value and innovation in the bitcoin mining industry."
The five sites range in size from 8 MW to 15 MW, for a total of 60 MW, and include interruptible-load designated power purchase agreements (PPAs). Load balancing is a unique benefit that bitcoin miners provide local power grids because of their ability to curtail energy use based on local demand, especially during rare times of unusually high demand on the grid, such as very cold and extremely hot weather.
The definitive agreements include the purchase of mining data centers and equipment at each site, excluding the miners, and the assumption of the underlying real property leases and power agreements by the Company.
CleanSpark currently owns and operates about 300 MW of infrastructure in
About CleanSpark
CleanSpark (Nasdaq: CLSK) is America's Bitcoin Miner™. We own and operate data centers that primarily run on low-carbon power. Our infrastructure responsibly supports Bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. We cultivate trust and transparency among our employees and the communities we operate in. Visit our website at www.cleanspark.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the timing and closing of the transactions; anticipated additions to CleanSpark's hashrate and the timing thereof; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company's prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law.
Investor Relations Contact
Brittany Moore
702-989-7693
ir@cleanspark.com
Media Contact
Eleni Stylianou
702-989-7694
pr@cleanspark.com
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SOURCE CleanSpark, Inc.
FAQ
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