CleanSpark Releases January 2024 Bitcoin Mining Update

Rhea-AI Summary

CleanSpark Inc. (Nasdaq: CLSK) announces the expansion of their Dalton, GA site, expected to operate at 1.6 EH/s once complete. The company also released an unaudited bitcoin mining and operations update for January 2024, with details on bitcoin mined, holdings, sales, and operational updates for Sandersville and Dalton expansions.

Insights

Market Research Analyst

The expansion of CleanSpark Inc.'s mining operations in Dalton, GA, is a strategic move that could potentially enhance the company's competitive position in the cryptocurrency mining industry. By doubling the hashrate to 1.6 EH/s, CleanSpark is set to increase its bitcoin mining capabilities significantly. This hashrate is a measure of the processing power of the bitcoin network and directly correlates with the ability to process transactions and mine new bitcoins. Given the company's unique partnership with the City of Dalton, which provides an interruptible power supply, CleanSpark can leverage this for operational cost savings during peak demand times, which could improve its profit margins.

However, the volatility of bitcoin prices and regulatory uncertainties surrounding the cryptocurrency market are factors that could affect the return on investment for this expansion. Investors should monitor the stability of cryptocurrency markets, as downturns could lead to decreased profitability for mining operations. The average sale price of $44,800 per bitcoin in January 2024 provides a snapshot of the company's revenue potential, but these figures could fluctuate widely with the volatile nature of bitcoin prices.

Financial Analyst

From a financial perspective, the sale of 6.4 bitcoins in January 2024 for approximately $286,000 is a minor revenue stream for CleanSpark Inc. compared to the scale of their operations and investments. However, the total bitcoin holdings of 3,573 units represent a significant asset on the company's balance sheet. Given the current hashrate of 10.09 EH/s and the month-end fleet efficiency of 26.4 J/Th, CleanSpark appears to be optimizing its energy consumption relative to its mining output, which is crucial for maintaining profitability in a sector where energy costs are a major operational expense.

Investors should also consider the capital expenditures associated with such expansions and the company's ability to fund these investments without compromising its financial stability. The long-term return on these investments is heavily dependent on the future price of bitcoin and the company's operational efficiency. It is important to assess the company's financial health, including cash flow and debt levels, to understand its capacity to withstand potential downturns in the cryptocurrency market.

Energy Sector Analyst

The partnership with the City of Dalton, where CleanSpark operates as the city's only interruptible load, is an innovative approach to managing energy consumption for cryptocurrency mining operations. This arrangement could serve as a model for other mining companies seeking to mitigate the high costs and environmental impact of their energy usage. By providing emergency power relief to the city, CleanSpark benefits from potentially lower energy costs and contributes to the stability of the local grid.

As an interruptible load, CleanSpark's mining operation can be temporarily shut down during peak demand periods, which not only supports the local utility in managing demand but also demonstrates a commitment to corporate social responsibility. This could be attractive to investors who are increasingly concerned with environmental, social and governance (ESG) factors. Nonetheless, the reliance on a single utility provider and the regulatory environment in Georgia are elements that could influence operational risks, including the availability and cost of electricity.

Announces expansion of Dalton, GA; site is expected to operate at 1.6 EH/s once complete

LAS VEGAS, Feb. 2, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner™, today released its unaudited bitcoin mining and operations update for the month ending January 31, 2024.

"I'm excited to announce that we expect energization to begin at our Sandersville expansion next week, with approximately 4.6 EH/s of machines fully hashing by mid-month," said Zach Bradford, CEO. "I'm also pleased to announce that permitting is underway to double the hashrate at our Dalton campus to 1.6 EH/s. We have a unique relationship with the City of Dalton, which owns and operates its own utility, whereby we are compensated to operate as the city's only interruptible load during times of emergency power needs. We view this as a best-in-class partnership and as an example of some of the creative ways that bitcoin miners are working with utilities to improve grid performance, even in regulated markets like Georgia."

January Bitcoin Mining Update (unaudited)

• Bitcoin mined in January: 577
• CY2024 bitcoin mined: 577
• Total bitcoin holdings as of January 31: 3,573
• Total bitcoin sold in January: 6.4
• Deployed fleet: 89,237
• Month-end fleet efficiency: 26.4 J/Th
• Current hashrate: 10.09 EH/s

The Company sold 6.4 bitcoin in January 2024 at an average of approximately $44,800 per bitcoin. Sales of bitcoin equated to proceeds of approximately $286,000. January daily bitcoin mined averaged 18.6 and reached a high of 21.9.

Operational update

Sandersville expansion. Crews are racking machines in preparation for a February 6 energization date. The first 100 MW are expected to be fully live by mid-February, delivering an expected hashrate of 4.6 EH/s. The remaining 50MW of the expansion is undergoing equipment testing by the manufacturer. For updates on our progress in Sandersville, check out the Company's official YouTube account here.

Dalton expansion. Permitting is underway for the expansion of the Company's Dalton campus. The 15MW expansion is expected to double the operating hashrate there to 1.6 EH/s.

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 expansion and timing of such expansion of the Bitcoin mining facilities in Sandersville, Georgia, and Dalton, Georgia, and the resulting anticipated benefits to CleanSpark (including 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

What is the ticker symbol of CleanSpark Inc.?

The ticker symbol of CleanSpark Inc. is CLSK.

What is the expected hashrate of the Dalton, GA site once the expansion is complete?

The Dalton, GA site is expected to operate at 1.6 EH/s once the expansion is complete.

How many bitcoin were mined by CleanSpark Inc. in January 2024?

CleanSpark Inc. mined 577 bitcoin in January 2024.

What was the total bitcoin holdings of CleanSpark Inc. as of January 31, 2024?

CleanSpark Inc. had a total of 3,573 bitcoin holdings as of January 31, 2024.

How many bitcoin were sold by CleanSpark Inc. in January 2024?

CleanSpark Inc. sold 6.4 bitcoin in January 2024.

What was the average selling price of bitcoin for CleanSpark Inc. in January 2024?

The average selling price of bitcoin for CleanSpark Inc. in January 2024 was approximately $44,800 per bitcoin.

What is the current hashrate of CleanSpark Inc.?

The current hashrate of CleanSpark Inc. is 10.09 EH/s.

What is the operational update for the Sandersville expansion?

Crews are racking machines in preparation for a February 6 energization date. The first 100 MW are expected to be fully live by mid-February, delivering an expected hashrate of 4.6 EH/s.

What is the status of the Dalton expansion for CleanSpark Inc.?

Permitting is underway for the expansion of the Company's Dalton campus. The 15MW expansion is expected to double the operating hashrate there to 1.6 EH/s.