CleanSpark Releases July 2024 Bitcoin Mining Update

Rhea-AI Summary

CleanSpark Inc. (Nasdaq: CLSK) released its unaudited bitcoin mining update for July 2024. The company mined 494 bitcoin during the month, bringing its total holdings to 7,082 bitcoin. CleanSpark's month-end operating hashrate reached 21.2 EH/s with a deployed fleet of 160,900 miners.

The company made significant progress in expanding operations, securing 75 MW of power agreements in Wyoming and closing its first Bitcoin mining site in the state. In Tennessee, CleanSpark began hashing under agreements with GRIID infrastructure Inc., adding 1 EH/s of additional hashrate. The company is progressing towards its target of 32 EH/s by the end of 2024.

CleanSpark's expansion plans include a 15 MW expansion in Dalton, expected to be operational by early September 2024, adding approximately 0.9 EH/s to its hashrate.

Positive

• Mined 494 bitcoin in July 2024, with total holdings reaching 7,082 bitcoin
• Secured 75 MW of power agreements in Wyoming and closed first Bitcoin mining site in the state
• Added 1 EH/s of hashrate in Tennessee through agreements with GRIID infrastructure Inc.
• Month-end operating hashrate increased to 21.2 EH/s
• On track to reach target of 32 EH/s by the end of 2024
• Dalton expansion expected to add 0.9 EH/s by early September 2024

Negative

• Slight decrease in average fleet efficiency due to operating a portion of the fleet in higher power modes

Insights

Financial Analyst

CleanSpark's July 2024 Bitcoin mining update reveals significant operational progress and strategic expansion. The company mined 494 bitcoin during the month, bringing its year-to-date total to 4,108. What's particularly noteworthy is the 567% increase in treasury compared to the same period last year, indicating robust growth in their bitcoin holdings.

The company's expansion into Wyoming and Tennessee is a strategic move to diversify its operations and increase its hashrate. With power agreements totaling 75 MW secured in Wyoming and the addition of 1 EH/s of hashrate in Tennessee, CleanSpark is on track to reach its ambitious target of 32 EH/s by year-end. This expansion could significantly boost the company's mining capacity and potentially its revenue.

However, investors should note that CleanSpark sold only 2.54 bitcoin in July at an average price of $62,070. This minimal selling suggests the company is holding onto its mined bitcoin, possibly anticipating future price appreciation. While this strategy could lead to significant gains if bitcoin prices rise, it also exposes the company to potential volatility in the cryptocurrency market.

The company's focus on efficiency is evident from its fleet efficiency of 22.89 J/Th, which is competitive in the industry. The slight change in average fleet efficiency due to operating in higher power modes demonstrates the company's ability to adapt to market conditions to maximize production.

Overall, CleanSpark's July update paints a picture of a company aggressively expanding its operations while maintaining a bullish stance on bitcoin. However, investors should carefully consider the risks associated with the volatile nature of cryptocurrency and the capital-intensive nature of mining operations.

Tech Expert

CleanSpark's technological advancements and expansion strategies are noteworthy from a tech perspective. The company's end-of-July operating hashrate of 21.2 EH/s is impressive, placing them among the top bitcoin miners globally. Their ambitious target of 32 EH/s by year-end demonstrates a commitment to scaling their operations rapidly.

The company's diversification into immersion cooling technology in Wyoming is particularly interesting. Immersion cooling can potentially increase mining efficiency and extend the lifespan of mining equipment. This 30 MW site is expected to add approximately 2 EH/s to CleanSpark's hashrate, which is a significant boost to their computational power.

CleanSpark's ability to adjust their fleet's power mode to maximize production during opportune times shows a sophisticated approach to mining operations. This flexibility allows them to optimize their energy usage and potentially increase profitability.

The expansion into Tennessee through co-location agreements with GRIID is another smart move. Co-location can help reduce capital expenditure while still allowing for rapid expansion. The addition of 1 EH/s of operational hashrate, with another 1.28 EH/s expected soon, represents a substantial increase in mining capacity.

However, it's important to note that as the global hashrate continues to climb, maintaining competitiveness will require ongoing investment in the latest mining hardware and continued optimization of operations. CleanSpark's current trajectory suggests they are well-positioned to keep pace with these industry demands, but investors should monitor how effectively they manage this technological arms race in the long term.

Mines 494 bitcoin during the month and increases treasury by 567% compared to same prior-year period

Officially expands into Wyoming and Tennessee

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

"We made significant progress in two new states this month," said Zach Bradford, CEO. "Power agreements totaling 75 MW have been secured in Wyoming along with the closing of our first Bitcoin mining site in the state. In Tennessee, we began hashing under our agreements with GRIID infrastructure Inc. with 1 EH/s of additional hashrate added in July. We're continuing our trajectory of growth as we progress towards our target of 32 EH/s by the end of the year."

July Bitcoin Mining Update (unaudited)

• Bitcoin mined in July: 494
• CY2024 bitcoin mined: 4,108
• Total bitcoin holdings as of July 31: 7,082
• Total bitcoin sold in July: 2.54
• Deployed fleet: 160,900
• Fleet efficiency: 22.89 J/Th
• Month-end operating hashrate: 21.2 EH/s

The Company sold 2.54 bitcoin in July 2024 at an average price of approximately $62,070 per bitcoin. The average hashrate throughout the month of July was 20.07 EH/s resulting in an average of 15.94 bitcoin mined daily and a single day high of 16.55. The slight change in average fleet efficiency was due to the Company operating a portion of its fleet in higher power modes to maximize production at opportune times.

Growth Update
Tennessee Co-location: Hashing in Tennessee per the terms of the Company's acquisition agreements with GRIID has begun. Under the co-location agreement approximately 50 MW of power is currently available, 1.0 EH/s of which was operational at month end, with an additional 1.28 EH/s expected to begin hashing by the end of the current week.

Wyoming Closings: Power agreements for 75 MW have been executed and the Company has closed on its first Bitcoin mining site in the state. The initial 30 MW site will be immersion-cooled and is expected to add approximately 2 EH/s to CleanSpark's hashrate before the end of the year. The Company expects to proceed with the closing of a second site in the coming weeks.

Dalton Expansion: Electrical primary installation is currently ongoing. The East building is completed, and electrical shelving is being installed. Construction of the West building is underway. The 15 MW expansion is expected to be hashing by early September 2024, leading to an increase of approximately 0.9 EH/s upon completion.

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 and targets 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 bitcoin did CleanSpark (CLSK) mine in July 2024?

CleanSpark (CLSK) mined 494 bitcoin in July 2024.

What was CleanSpark's (CLSK) total bitcoin holdings as of July 31, 2024?

CleanSpark's (CLSK) total bitcoin holdings as of July 31, 2024, were 7,082 bitcoin.

What is CleanSpark's (CLSK) target hashrate by the end of 2024?

CleanSpark (CLSK) is targeting a hashrate of 32 EH/s by the end of 2024.

In which new states did CleanSpark (CLSK) expand its operations in July 2024?

CleanSpark (CLSK) expanded its operations into Wyoming and Tennessee in July 2024.

How much additional hashrate did CleanSpark (CLSK) add in Tennessee in July 2024?

CleanSpark (CLSK) added 1 EH/s of additional hashrate in Tennessee in July 2024.