CleanSpark Inc. (NASDAQ: CLSK) increased its potential bitcoin mining computing power (or hashrate) by 1.8 exahashes per second (EH/s) to 8.5 EH/s, which is half of its 16 EH/s target for 2023.
The company announced on Thursday that phase two of its mining campus in Washington, Georgia, went live.
Phase two of the Washington campus has the ability to generate 50 megawatts (MW) of power. Currently, around 10,500 bitcoin mining machines are already up and running.
In August 2022, CleanSpark acquired the campus, which had a power capacity of 36 MW, along with the existing infrastructure and machines, for USD$25.1 million. Since then, CleanSpark has spent about USD$55 million on phase two, which includes construction, infrastructure and machines.
This investment is expected to increase the campus’s total power capacity to 86 MW. When you consider the additional miners purchased and added to phase one, CleanSpark has invested over $100 million in the campus, and this funding has already been completed.
“The speed with which our team has successfully executed this expansion testifies to the technical expertise and experience that we have gained since we transitioned from an energy company to a bitcoin mining company,” said Zach Bradford, CEO of CleanSpark.
“But it couldn’t have been possible without local contractors and the Washington, GA, community, who have been supportive partners of our efforts to generate sustainable economic growth in the area. This expansion has already helped us get more than halfway to our year-end guidance of 16 EH/s.”
CleanSpark has been growing rapidly despite the recent downturn in the market. Just last month, the company bought a ready-to-use bitcoin mining campus in Dalton, Georgia.
The deal cost them USD$9.3 million, which it paid in cash. CleanSpark is known for using highly efficient mining machines and mainly relies on low-carbon energy sources, which make up more than 90 per cent of its overall energy usage.
CleanSpark shares 12.8 per cent to $7.47 on Thursday on the NASDAQ exchange.
Read more: Four companies combine to build largest registered crypto trading company
Read more: Hut 8 Mining’s second annual ESG report shows dedication to carbon neutrality
Bitcoin halving causes increase in mining equipment demand
The next Bitcoin halving is set to happen at block 840,000, which is predicted to occur in April, 2024. During the halving, the reward given for mining a block will decrease from 6.25 Bitcoin to 3.125 Bitcoin.
Bitcoin companies have been scaling their mining fleets in preparation for this event.
Riot Platforms (NASDAQ: RIOT) signed into a long-term agreement with MicroBT, including an initial order of 7.6 EH/s of Bitcoin miners for its facility in Corsicana, Texas. Riot’s total self-mining hash rate capacity is expected to be 20.1 EH/s by mid-2024.
Hut 8 Mining (TSX: HUT) completed its all-stock merger with U.S. Bitcoin Corp (USBTC). The newly combined company’s self-mining capacity is expected to be 7.5 EH/s. This includes 1.8 EH/s at the King Mountain site in Texas.
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