CleanSpark Exceeds 14 EH/s as Sandersville Expansion Comes Online

Rhea-AI Summary

CleanSpark Inc. (CLSK) has completed energizing the first 100 MW of its expansion in Georgia, increasing its operating hashrate by 40% to over 14 EH/s. The company aims to provide grid services and economic development to the community while partnering with utilities for energy resilience.

Insights

Energy Industry Analyst

The energization of CleanSpark Inc.'s 100 MW facility represents a significant development in the energy sector, particularly within the realm of grid services. The ability to offer interruptible load is crucial, as it provides flexibility to the power grid, allowing for better management of supply and demand. This can lead to increased reliability and stability of the grid, especially during peak usage times or unforeseen power outages.

From a financial perspective, the expansion in Sandersville, Georgia, could potentially open up new revenue streams for CleanSpark. The company's enhanced capability to contribute to grid services may attract contracts from utility companies seeking to bolster their grid management solutions. Furthermore, the 40% increase in hashrate indicates a substantial rise in the company's Bitcoin mining capacity, which could translate into higher revenue, assuming stable or favorable cryptocurrency market conditions.

Cryptocurrency Market Analyst

The announcement of CleanSpark's increased operating hashrate to over 14 EH/s is a noteworthy event for stakeholders in the cryptocurrency industry. A hashrate of this magnitude implies a significant computational power dedicated to Bitcoin mining, which can lead to a larger share of the total Bitcoin mining rewards. However, the impact on the company's bottom line will be heavily influenced by the volatile nature of Bitcoin prices and the overall health of the cryptocurrency market.

Investors should consider the potential risks associated with the dependency on Bitcoin's market performance. While an increased hashrate generally suggests improved mining efficiency and competitiveness, it is also associated with higher energy consumption and operational costs. The balance between these factors and the fluctuating price of Bitcoin will be critical in determining the long-term profitability of CleanSpark's expansion.

Environmental Consultant

The integration of a 100 MW interruptible load by a Bitcoin mining operation like CleanSpark has broader implications for environmental sustainability. The company's commitment to providing grid services by offering its load as interruptible is a positive step towards responsible energy consumption in the cryptocurrency mining industry. It suggests a willingness to reduce operation during high-demand periods, potentially lessening the strain on the grid and the need for additional carbon-intensive energy generation.

However, the environmental impact of CleanSpark's expansion also depends on the source of its electricity. If the company utilizes renewable energy sources, the expansion could be seen as a move towards greener Bitcoin mining practices. Conversely, if the energy is primarily sourced from fossil fuels, the increased hashrate and energy consumption could negate the potential environmental benefits of an interruptible load. Stakeholders should closely monitor CleanSpark's energy sourcing strategies to fully assess the environmental implications of its operations.

100 MW of interruptible load now online, bringing increased grid services capabilities to Georgia

CleanSpark's operating hashrate has increased 40% since energization began early last week

LAS VEGAS, Feb. 15, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner™, today announced it has finished energizing the first 100 MW of its expansion in Sandersville, Georgia, increasing its fleetwide operating hashrate to over 14 exahashes per second (EH/s).

"I believe we have likely set an industry record for speed of machine deployment, thanks to the extraordinary grit and resolve exhibited by our teams and partners in Sandersville," said Zach Bradford, CEO. "The excitement around this expansion has been palpable. Not only are we bringing economic development to the community, but we also provide an important grid service because our load is interruptible and can be returned to the community at a moment's notice as we work in partnership with the utilities and power providers to help continue Georgia's legacy of abundant and resilient energy."

Bradford continued, "I'm also pleased to report that our teams have already been deployed to Mississippi to begin transitioning these sites into the CleanSpark portfolio. We look forward to sharing additional details about our most recent acquisitions in the coming weeks."

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 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 Company realizing the hash rate and efficiency discussed in this press release; 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
702-989-7692
pr@cleanspark.com 

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SOURCE CleanSpark, Inc.

FAQ

What is CleanSpark's (CLSK) current operating hashrate after the expansion in Georgia?

CleanSpark's operating hashrate has increased to over 14 EH/s after energizing the first 100 MW of its expansion in Georgia.

What industry record did CleanSpark (CLSK) likely set with the speed of machine deployment in Sandersville, Georgia?

CleanSpark likely set an industry record for speed of machine deployment in Sandersville, Georgia, thanks to the grit and resolve of its teams and partners.

How does CleanSpark (CLSK) contribute to the community in Georgia through its expansion?

CleanSpark not only brings economic development to the community in Georgia but also provides an important grid service with interruptible load that can be returned to the community quickly.

Where is CleanSpark (CLSK) deploying its teams next after completing the expansion in Georgia?

CleanSpark's teams have been deployed to Mississippi to begin transitioning new sites into the company's portfolio.