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CleanSpark to Add 5 EH/s and Increase 2024 Guidance With Acquisition of Seven Additional Bitcoin Mining Facilities in Tennessee

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CleanSpark Inc. (Nasdaq: CLSK) has announced the acquisition of seven bitcoin mining facilities in the Knoxville, Tennessee area for $27.5 million. This strategic move is expected to add over 85 MW of immediately available capacity and increase the company's hashrate by 5 EH/s, boosting its current capacity by over 22%. The acquisition is set to close by September 25, 2024.

With this expansion, CleanSpark anticipates reaching 37 EH/s before the end of 2024, up from its previous 23 EH/s. The company plans to install the latest generation S21 pro miners, which have already arrived. CEO Zach Bradford highlighted the strategic timing of mining server purchases, allowing CleanSpark to capitalize on market opportunities and fill newly acquired data center space efficiently.

CleanSpark Inc. (Nasdaq: CLSK) ha annunciato l'acquisizione di sette strutture per il mining di bitcoin nell'area di Knoxville, Tennessee, per un valore di 27,5 milioni di dollari. Questa mossa strategica dovrebbe aggiungere oltre 85 MW di capacità immediatamente disponibile e aumentare l'hashrate dell'azienda di 5 EH/s, portando la sua capacità attuale a un incremento di oltre il 22%. L'acquisizione dovrebbe chiudersi entro il 25 settembre 2024.

Con questa espansione, CleanSpark prevede di raggiungere 37 EH/s entro la fine del 2024, rispetto ai precedenti 23 EH/s. L'azienda prevede di installare i miner S21 pro di ultima generazione, già arrivati. Il CEO Zach Bradford ha sottolineato il momento strategico degli acquisti dei server di mining, permettendo a CleanSpark di capitalizzare sulle opportunità di mercato e di utilizzare in modo efficiente lo spazio del centro dati recentemente acquisito.

CleanSpark Inc. (Nasdaq: CLSK) ha anunciado la adquisición de siete instalaciones de minería de bitcoin en el área de Knoxville, Tennessee, por un valor de 27,5 millones de dólares. Este movimiento estratégico se espera que añada más de 85 MW de capacidad disponible de inmediato y aumente la tasa de hash de la compañía en 5 EH/s, elevando su capacidad actual en más del 22%. Se espera que la adquisición se cierre antes del 25 de septiembre de 2024.

Con esta expansión, CleanSpark anticipa alcanzar 37 EH/s antes de que termine 2024, subiendo desde los anteriores 23 EH/s. La empresa planea instalar los mineros de última generación S21 pro, que ya han llegado. El CEO Zach Bradford destacó el momento estratégico de la compra de servidores de minería, permitiendo a CleanSpark capitalizar oportunidades del mercado y aprovechar eficientemente el espacio del centro de datos recién adquirido.

클린스파크 주식회사 (Nasdaq: CLSK)는 텐네시주 녹스빌 지역에서 7개의 비트코인 채굴 시설2,750만 달러에 인수했다고 발표했습니다. 이 전략적 조치는 즉시 사용할 수 있는 85 MW 이상의 용량을 추가하고 회사의 해시레이트를 5 EH/s 만큼 증가시켜 현재 용량을 22% 이상 향상시킬 것으로 예상됩니다. 인수는 2024년 9월 25일까지 마감될 예정입니다.

이번 확장으로 클린스파크는 2024년 말까지 37 EH/s에 도달할 것으로 기대하고 있으며, 이는 이전의 23 EH/s에서 증가한 수치입니다. 회사는 이미 도착한 최신 S21 프로 채굴기를 설치할 계획입니다. CEO 잭 브래드포드는 채굴 서버 구매의 전략적 타이밍을 강조하며, 클린스파크가 시장 기회를 활용하고 새로 인수한 데이터 센터 공간을 효율적으로 활용할 수 있게 되었다고 밝혔습니다.

CleanSpark Inc. (Nasdaq: CLSK) a annoncé l'acquisition de sept installations de minage de bitcoin dans la région de Knoxville, Tennessee, pour un montant de 27,5 millions de dollars. Ce mouvement stratégique devrait ajouter plus de 85 MW de capacité immédiatement disponible et augmenter le hashrate de l'entreprise de 5 EH/s, portant sa capacité actuelle à une augmentation de plus de 22 %. L'acquisition devrait être finalisée d'ici le 25 septembre 2024.

Avec cette expansion, CleanSpark prévoit d'atteindre 37 EH/s avant la fin de 2024, contre 23 EH/s précédemment. L'entreprise prévoit d'installer les derniers mineurs S21 pro, qui sont déjà arrivés. Le PDG Zach Bradford a souligné le moment stratégique des achats de serveurs de minage, permettant à CleanSpark de tirer parti des opportunités du marché et d'utiliser efficacement l'espace du centre de données nouvellement acquis.

CleanSpark Inc. (Nasdaq: CLSK) hat die Übernahme von sieben Bitcoin-Mining-Anlagen im Bereich Knoxville, Tennessee, für 27,5 Millionen Dollar bekannt gegeben. Dieser strategische Schritt wird voraussichtlich über 85 MW an sofort verfügbarer Kapazität hinzufügen und die Hashrate des Unternehmens um 5 EH/s erhöhen, wodurch die aktuelle Kapazität um über 22 % gesteigert wird. Der Abschluss der Akquisition ist für den 25. September 2024 geplant.

Mit dieser Expansion erwartet CleanSpark, bis Ende 2024 37 EH/s zu erreichen, im Vergleich zu zuvor 23 EH/s. Das Unternehmen plant die Installation der neuesten S21 Pro Miner, die bereits geliefert wurden. CEO Zach Bradford hob den strategischen Zeitpunkt des Kaufs von Mining-Servern hervor, der CleanSpark ermöglicht, Marktchancen zu nutzen und den neu erworbenen Raum im Rechenzentrum effizient auszufüllen.

Positive
  • Acquisition of seven bitcoin mining facilities for $27.5 million, adding 85 MW of capacity
  • Expected increase in hashrate by 5 EH/s, boosting current capacity by over 22%
  • Projected achievement of 37 EH/s before the end of 2024
  • Strategic timing of mining server purchases at low prices
  • Expansion into Tennessee, leveraging experience from successful operations in Georgia
Negative
  • Significant capital expenditure of $27.5 million for the acquisition
  • Potential integration challenges with multiple new facilities
  • Increased operational costs associated with running additional mining facilities

Insights

CleanSpark's acquisition of seven Bitcoin mining facilities in Tennessee for $27.5 million is a strategic move that significantly boosts its operational capacity. The deal's valuation at $324,000 per megawatt appears favorable, potentially indicating a value-accretive acquisition. The immediate addition of 85 MW capacity and the expected increase in hashrate by 5 EH/s demonstrate substantial short-term growth.

The company's revised guidance of 37 EH/s by end-2024, up from the previous target, signals strong confidence in execution. This expansion, coupled with recent acquisitions and energizations, positions CleanSpark for accelerated market share growth in the competitive Bitcoin mining sector. However, investors should consider the capital-intensive nature of these expansions and monitor the company's ability to maintain profitability amidst Bitcoin price fluctuations.

CleanSpark's expansion into Tennessee's energy landscape is noteworthy. The company's strategy of targeting areas with favorable political and energy environments, similar to their successful operations in Georgia, is prudent for long-term sustainability. The emphasis on how Bitcoin mining can benefit local power grids and communities suggests a forward-thinking approach to energy management.

The acquisition of multiple smaller facilities (10-20 MW each) instead of a single large site offers operational flexibility and risk mitigation. This approach allows for easier integration into local grids and potentially reduces the impact of any single point of failure. The company's focus on high-quality infrastructure at competitive valuations could lead to improved operational efficiency and cost management in the long run, important factors in the energy-intensive Bitcoin mining industry.

CleanSpark's rapid deployment of next-generation S21 pro miners demonstrates technological agility and a commitment to maintaining a competitive edge in the Bitcoin mining space. The company's strategy of pre-purchasing mining equipment at low prices to quickly capitalize on infrastructure acquisitions shows foresight in market timing and supply chain management.

The projected increase from 23 EH/s to 37 EH/s by end-2024 represents a significant boost in computational power, potentially increasing CleanSpark's share of the global Bitcoin mining hashrate. This expansion could lead to improved mining efficiency and increased Bitcoin rewards. However, investors should be aware that the rapidly evolving nature of mining technology means continuous investment will be necessary to maintain this competitive position in the long term.

Expected to add over 85 MW of immediately available capacity

LAS VEGAS, Sept. 11, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner® (the "Company") today announced it has entered into definitive agreements to acquire seven bitcoin mining facilities and certain associated land in the Knoxville, Tennessee, area for total cash payments of $27.5 million, or approximately $324,000 per megawatt. This acquisition builds on the Company's strategy of securing high-quality infrastructure opportunities at market-leading valuations.

The Company anticipates closing at each of the sites on or before September 25, 2024. The operating hashrate of the combined facilities is anticipated to result in 5 exahashes per second (EH/s) once the latest generation S21 pro miners are installed, increasing the Company's current hashrate by over 22 percent. The miners required for this expansion have recently arrived and will be installed promptly upon the closing of each site. The seven sites total 85 MW and range in size from 10 MW to 20 MW.

"With the energization of our Dalton 4 campus last week, we've already surpassed 23 EH/s and expect more hashrate to come online this week from the energization of 50 MW of S21 pros in Sandersville. With this additional 5 EH/s expected to begin hashing over the coming weeks, we now expect to achieve 37 EH/s before the end of 2024. As we've previously discussed, our timing of the market on mining server purchases intentionally locked in low prices so that we could take advantage of opportunities like this and immediately fill acquired data center space. The GRIID acquisition, our recent closing in Wyoming, and now this new transaction represents the continued execution of our growth strategy. Tennessee has a similar political and energy environment to Georgia, where we've deployed nearly $1B of capital and operate nearly 500 MW," said Zach Bradford, CEO. "Applying the same winning community-oriented strategy to The Volunteer State is our plan as we expand our presence in the region and continue showcasing how Bitcoin can benefit the local power grid and communities where we're located."

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: the timing and closing of the acquisitions in the Knoxville, Tennessee area; 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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cleanspark-to-add-5-ehs-and-increase-2024-guidance-with-acquisition-of-seven-additional-bitcoin-mining-facilities-in-tennessee-302244673.html

SOURCE CleanSpark, Inc.

FAQ

How many bitcoin mining facilities is CleanSpark (CLSK) acquiring in Tennessee?

CleanSpark is acquiring seven bitcoin mining facilities in the Knoxville, Tennessee area.

What is the total cost of CleanSpark's (CLSK) recent acquisition in Tennessee?

The total cost of the acquisition is $27.5 million, or approximately $324,000 per megawatt.

How much additional hashrate is CleanSpark (CLSK) expecting from the new Tennessee facilities?

CleanSpark expects to add 5 exahashes per second (EH/s) from the newly acquired facilities.

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

CleanSpark projects to achieve a hashrate of 37 EH/s before the end of 2024.

When is CleanSpark (CLSK) expected to close the acquisition of the Tennessee facilities?

CleanSpark anticipates closing the acquisition at each of the sites on or before September 25, 2024.

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