CleanSpark Exceeds 15 EH/s, Completes Acquisition of Mississippi Bitcoin Mining Data Centers

Rhea-AI Summary

CleanSpark, Inc., a leading Bitcoin miner, has completed the acquisition of three bitcoin mining data centers in Mississippi, boosting its operating hashrate to over 15 EH/s. The company aims to create jobs and foster economic growth in the region while maximizing grid services capabilities.

Insights

Financial Analyst

The acquisition of three bitcoin mining data centers by CleanSpark is a significant development for the company and its investors. The immediate commencement of operations and the expected hashrate increase to 2.4 EH/s from the new facilities indicate a substantial expansion in CleanSpark's mining capabilities. This expansion is likely to have a positive impact on the company's revenue stream, as hashrate directly correlates with the potential for Bitcoin mining profitability.

However, investors should be aware of the volatile nature of cryptocurrency markets and the associated risks. The profitability of Bitcoin mining operations can fluctuate significantly with the price of Bitcoin, mining difficulty and energy costs. CleanSpark's investment in energy infrastructure and its focus on maximizing grid services capabilities are strategic moves to mitigate some of these risks and enhance operational efficiency.

Moreover, the company's commitment to community partnership and economic development in the regions it operates could potentially foster goodwill and provide long-term stability. It's important to evaluate how these socio-economic contributions align with the company's growth strategy and whether they translate into tangible benefits for shareholders.

Market Research Analyst

The expansion of CleanSpark into Mississippi marks a strategic move within the competitive landscape of Bitcoin mining. By increasing its operational hashrate to over 15 EH/s, CleanSpark is positioning itself to become a more dominant player in the sector. This expansion could potentially attract investor interest as the company demonstrates growth and scalability.

It is essential to consider the broader implications of this expansion on the Bitcoin mining industry. As more companies increase their mining capacities, there may be concerns about the resulting increase in mining difficulty, which could affect all miners' profitability. Additionally, the environmental impact of Bitcoin mining is an ongoing concern and CleanSpark's emphasis on clean energy and grid services could resonate with environmentally conscious investors and consumers.

From a market perspective, the company's previous investments and community contributions in Georgia suggest a replicable model that may be applied in Mississippi. If successful, this could serve as a blueprint for future expansions and potentially increase the company's market share.

Energy Sector Analyst

CleanSpark's investment in energy infrastructure as part of its Bitcoin mining operations is a noteworthy aspect of its business model. The company's focus on maximizing grid services capabilities indicates an awareness of the critical role energy consumption plays in the sustainability and cost-effectiveness of mining operations. By leveraging energy infrastructure, CleanSpark may achieve a competitive advantage in terms of operational costs, especially in a sector where electricity costs are a significant determinant of profitability.

The move into Mississippi also suggests a strategic selection of locations based on energy availability and costs. Investors should monitor how CleanSpark manages its energy consumption and the potential benefits of its investments in local energy infrastructure. The ability to maintain low energy costs while scaling operations could be a key factor in the company's long-term success and resilience against market volatility.

Furthermore, CleanSpark's approach to community engagement and economic growth through job creation and local investments could create synergies that enhance its operational framework. This holistic approach to business expansion may lead to diversified revenue streams and a strengthened brand reputation.

Operations have already commenced at the three facilities, with an expected hashrate of 2.4 EH/s once fully loaded with S21s

LAS VEGAS, Feb. 27, 2024 /PRNewswire/ -- CleanSpark, Inc., America's Bitcoin Miner, today announced it has completed the acquisition of three bitcoin mining data centers in Mississippi, effective February 26. Initial operations have already begun, boosting the Company's operating hashrate to over 15 exahashes per second (EH/s).

"We are thrilled to start operating in Mississippi with our latest expansion. The teams have already racked miners, sending our fleetwide hashrate to over 15 EH/s, and we are hard at work as we sprint to add more hashrate as quickly as possible," said Zach Bradford, CEO. "Expanding into a new state is an important milestone for our company and we are looking forward to partnering with the communities we are joining. By maximizing the grid services capabilities of bitcoin miners, we aim to create jobs and foster economic growth that benefits both our new neighbors and our shareholders. Our investment in Mississippi is one more step in the direction of the shared prosperity that Bitcoin promises."

CleanSpark has a strong tradition of supporting and benefiting the neighborhoods it operates in. In nearby Georgia, it has invested over $700 million into energy infrastructure, miners, buildings, and job creation, while contributing tens of millions of dollars to communities in the form of taxes and local margins on energy bills. CleanSpark expects to bring the same level of care and attention to Mississippi that it is known for in Georgia.

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: job creation, boosting economic growth in Mississippi or for the Company, the promise of shared prosperity, 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 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cleanspark-exceeds-15-ehs-completes-acquisition-of-mississippi-bitcoin-mining-data-centers-302072367.html

SOURCE CleanSpark, Inc.

FAQ

What did CleanSpark announce regarding bitcoin mining data centers in Mississippi?

CleanSpark announced the completion of the acquisition of three bitcoin mining data centers in Mississippi, increasing its operating hashrate to over 15 EH/s.

What is the expected hashrate of the facilities once fully loaded with S21s?

The expected hashrate of the facilities once fully loaded with S21s is 2.4 EH/s.

Who is the CEO of CleanSpark?

Zach Bradford is the CEO of CleanSpark.

What is CleanSpark's focus in expanding into Mississippi?

CleanSpark aims to maximize the grid services capabilities of bitcoin miners to create jobs and foster economic growth in Mississippi.