CleanSpark Releases June 2024 Bitcoin Mining Update

Rhea-AI Summary

CleanSpark, a prominent Bitcoin miner, announced its June 2024 operational updates. The company mined 445 bitcoins, raising its total to 3,614 for 2024. Its hashrate exceeded the mid-year target, reaching over 20 EH/s, doubling since December. This achievement followed the acquisition of five mining sites in Georgia, adding 60 MW of infrastructure. The new sites include unique power purchase agreements, aiding utility providers. CleanSpark sold 8.06 bitcoins in June at an average price of $67,514 per bitcoin. The company also completed phases of its Dalton expansion, expected to reach 2.4 EH/s by September 2024.

Positive

• CleanSpark mined 445 bitcoins in June 2024, bringing the total to 3,614 for the year.
• The company's hashrate exceeded 20 EH/s, doubling since December.
• Acquisition of five new mining sites in Georgia added 60 MW of infrastructure.
• The company sold 8.06 bitcoins at an average price of $67,514 each.
• Dalton expansion expected to add 2.4 EH/s by September 2024.

Negative

• Only 1.7 EH/s of the new Georgia sites' hashrate has been deployed so far.

Insights

Financial Analyst

CleanSpark Inc.'s recent update on their bitcoin mining operations presents notable developments in terms of hashrate growth and operational efficiency. For a company in the highly competitive cryptocurrency mining industry, doubling the hashrate to 20 EH/s since December is a significant achievement. This showcases a substantial enhancement in their mining capacity, which directly translates to higher potential revenues, assuming the mining difficulty and bitcoin prices remain favorable.

From a financial perspective, the company mined 445 bitcoins in June, contributing to a total of 3,614 bitcoins for 2024. With bitcoin prices hovering around $67,514 per bitcoin, this production level indicates a robust revenue stream. However, it is worth noting the sale of only 8.06 bitcoins in June. While this low sale volume might seem conservative, it suggests a strategic decision to hold the mined bitcoins, potentially betting on future price increases. This approach is in line with treasury management strategies commonly employed in the crypto space.

Investors should also consider the company's deployment of 152,505 miners with an efficiency of 22.31 J/Th. This metric is important as it reflects the energy consumption per terahash, which impacts operational costs significantly. Higher efficiency can lead to lower energy expenses, enhancing profit margins.

In summary, CleanSpark's operational updates suggest solid growth and a strong position in the bitcoin mining industry, with strategic moves that could yield long-term benefits.

Market Research Analyst

The acquisition of five new mining sites in Georgia and the agreement to acquire GRIID Infrastructure are key developments for CleanSpark Inc. These acquisitions not only contribute to the increase in hashrate but also provide a substantial 60 MW of infrastructure and unique interruptible-load designated power purchase agreements (PPAs). These PPAs are a noteworthy element, as they offer load balancing capabilities beneficial for utility providers, potentially lowering operational costs during off-peak times.

The strategic expansion into Wyoming and Tennessee and the ongoing development at the Dalton campus further indicate CleanSpark's long-term vision and commitment to scaling its operations. These expansions are expected to add significant hashrate, thereby increasing the company's capacity to mine more bitcoins.

However, market analysts should keep an eye on the volatility of bitcoin prices and the overall regulatory environment. While the operational updates are promising, external factors such as bitcoin market trends and evolving regulatory landscapes could influence the company's performance.

Nonetheless, CleanSpark's focused strategy on enhancing its mining capabilities and efficient energy management positions it well for future growth and competitiveness in the bitcoin mining market.

Energy Analyst

CleanSpark Inc.'s operational update highlights the importance of energy efficiency in the cryptocurrency mining sector. The deployment of 60 MW of infrastructure across the new sites in Georgia, along with the interruptible-load designated power purchase agreements (PPAs), showcases a strategic move towards optimizing energy use. These PPAs allow CleanSpark to balance loads more effectively, potentially reducing energy costs by consuming power during off-peak hours when rates are lower.

The efficiency of 22.31 J/Th is a critical metric here. In the context of bitcoin mining, energy efficiency directly influences profitability since lower energy consumption per terahash reduces operational expenses. CleanSpark's advancements in this area could provide a competitive edge, particularly as energy costs continue to rise globally.

Moreover, the expansion projects in Wyoming, Tennessee, and at the Dalton campus underscore a commitment to scaling operations sustainably. The Dalton campus, expected to operate at 2.4 EH/s upon completion, further exemplifies CleanSpark's strategy of integrating energy-efficient technologies into its growth plans.

For investors, CleanSpark's focus on energy-efficient mining practices not only promises cost savings but also aligns with broader trends towards sustainability, which could enhance the company's appeal in the long run.

Company mined 445 bitcoin; Exceeds 20 EH/s, doubling operating hashrate since December

LAS VEGAS, July 2, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner™, today released its unaudited bitcoin mining and operations update for the month ending June 30, 2024.

The Company achieved and exceeded its mid-year target of 20 EH/s in operational hashrate, a result of its previously announced acquisition of five new bitcoin mining sites in Georgia. The 60 MW of infrastructure from these sites include interruptible-load designated power purchase agreements (PPAs) with load balancing capabilities, a unique benefit for utility providers and the power grid.

"We reached a tremendous milestone on our path to 50 EH/s and beyond. Surpassing 20 EH/s in operational hashrate is more than double our hashrate from December," said Zach Bradford, CEO. "Doubling our hashrate takes grit and teamwork and our growth is a testament to the dedication of our teams. While our peers are exploring other avenues of income, we're laser-focused on delivering results and increasing our bitcoin mining hashrate and associated revenues. We continue to maximize efficiency at our existing sites and look forward to the opportunities ahead of us in Wyoming and Tennessee."

June Bitcoin Mining Update (unaudited)

• Bitcoin mined in June: 445
• CY2024 bitcoin mined: 3,614
• Total bitcoin holdings as of June 30: 6,591
• Total bitcoin sold in June: 8.06
• Deployed fleet: 152,505
• Month-end fleet efficiency: 22.31 J/Th
• Current hashrate: 20.4 EH/s

The Company sold 8.06 bitcoin in June 2024 at an average price of approximately $67,514 per bitcoin. The average hashrate throughout the month of June was 17.85 resulting in an average of 14.83 bitcoin mined daily and a single day high of 22.41.

Growth Update
Definitive Agreement executed to acquire GRIID Infrastructure (Nasdaq: GRDI). The Company entered into an agreement to acquire GRIID Infrastructure. (See the Company's SEC filings for additional details.)

Closed acquisition of five turnkey sites in Georgia, providing 60 MW of immediately available data center infrastructure. Once fully deployed, sites will add 3.7 EH/s of total hashrate. As of June 30, approximately 1.7 EH/s have been deployed, with additional hashrate expected to come online in July.

Dalton expansion concrete pours for both building slabs have been completed and transformers have been set. When the full expansion is operational, CleanSpark's Dalton campus, which consists of four independent data centers, is expected to operate at 2.4 EH/s. The Company expects this 15 MW expansion to be completed by September 2024.

About CleanSpark 
CleanSpark (Nasdaq: CLSK) is America's Bitcoin Miner™. We own and operate multiple 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: future opportunities in Tennessee and Wyoming; the timing and completion of the acquisition of Griid Infrastructure; the timing and operational results of the Dalton expansion; 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

How many bitcoins did CleanSpark mine in June 2024?

CleanSpark mined 445 bitcoins in June 2024.

What was CleanSpark's total hashrate in June 2024?

CleanSpark's total hashrate exceeded 20 EH/s in June 2024.

What is the significance of CleanSpark's acquisition of new mining sites in Georgia?

The acquisition of five new mining sites in Georgia added 60 MW of infrastructure and helped CleanSpark double its hashrate since December.

How many bitcoins did CleanSpark sell in June 2024 and at what price?

CleanSpark sold 8.06 bitcoins at an average price of $67,514 per bitcoin in June 2024.

What is the expected hashrate of CleanSpark's Dalton campus after the expansion?

CleanSpark's Dalton campus is expected to operate at 2.4 EH/s after the expansion is completed by September 2024.