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Tuesday, Dec 3, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Bitcoin

CleanSpark buys two bitcoin mining campuses in Georgia for $9.3M

The acquisition will add slightly under 1 exahash per second (EH/s) to its hashrate

CleanSpark buys two bitcoin mining campuses in Georgia for $9.3M
Photo from Jievani Weerasinghe via Unsplash

CleanSpark Inc. (NASDAQ: CLSK) purchased two bitcoin mining campuses in Dalton, Georgia for $9.3 million.

The company said on Wednesday that the acquisition will add slightly under 1 exahash per second (EH/s) to its hashrate.

CleanSpark has purchased and fully paid for over 6,000 Antminer S19 XPs and S19J Pro+s, which are the latest and most energy-efficient bitcoin mining machines. These machines will be deployed across two facilities owned by CleanSpark.

“This acquisition ensures that we have more than enough infrastructure to reach our year-end target of 16 EH/s,” said Zach Bradford, CEO of CleanSpark.

“It also continues to position us as one of the most power-efficient miners on an energy-per-hashrate basis.”

CleanSpark has been actively acquiring machines and making strategic purchases since the start of the crypto bear market. In recent developments, the company purchased 12,500 new Antminer S19 XP machines at a discounted rate. Additionally, CleanSpark acquired 20,000 Antminer S19j Pro+ units in February and fully paid for them. In April, the company further expanded its holdings by purchasing 45,000 new Antminer S19 XP units.

“We continue to make use of opportunities created by current market conditions to prepare for next year’s bitcoin halving,” said Gary A. Vecchiarelli, CFO at CleanSpark.

“Importantly, this acquisition is fully paid for from our existing cash reserves and we expect it to almost immediately start driving revenue to our bottom line.”

CleanSpark predominantly utilizes low-carbon energy sources, constituting more than 90 per cent of its energy mix, for mining bitcoin.

The company follows a balanced capital management strategy by selling a portion of its mined bitcoins in order to reinvest in growth.

This approach, combined with CleanSpark’s proprietary mining model, enabled the company to surpass its year-end guidance in 2022.

During that time, CleanSpark tripled its hashrate and achieved one of the highest hashrate realization rates among its industry counterparts, even in the challenging conditions of the crypto bear market.

CleanSpark shares rose 0.9 per cent to $4.72 on Friday on the NASDAQ exchange.

Read more: Hut 8 Mining merges with U.S.-based data and Bitcoin mining group

Read more: Filecoin Foundation and Lockheed Martin partner on an interplanetary file system

United States has been hub for Bitcoin mining since 2021

Since China banned the energy-intensive crypto mining industry in 2021 and Russia is now contemplating a similar move, the United States has emerged as the leading global destination for crypto miners. The United States controls over 35 per cent of Bitcoin’s hashrate with Kazakhstan in second with approximately 18.1 per cent.

As a result, hundreds of thousands of mining machines, worth billions of dollars, are now connecting to electrical grids across America. This development has given rise to a completely new industry, bringing in additional tax revenue for local governments and generating substantial profits for many miners. However, concerns about power consumption and environmental impact have also been raised. While some states actively seek to attract miners, others are adopting a more cautious approach or even rejecting them altogether.

A few big name companies have emerged in the sector including Marathon Digital Holdings (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT) and Genesis Mining.

Canadian-based Hut 8 Mining (NASDAQ: HUT) (TSX: HUT) and privately-held Florida-based United States Bitcoin Mining Corp. (USBTC) have agreed to a merger of equals set to close later on this year.

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