- CleanSpark’s $27.5M Knoxville acquisition adds 85 MW capacity and boosts hashrate by 5 EH/s, aiming for 37 EH/s by end of 2024.
- The new facilities complement past expansions, including GRIID and Wyoming, showcasing CleanSpark’s strategic growth and market timing.
- Despite a 4.5% stock drop, Bernstein rates CleanSpark “outperform,” highlighting its top position in Bitcoin mining and energy efficiency.
Bitcoin miner CleanSpark Inc. has disclosed a purchase. The firm has officially signed contracts to buy seven Bitcoin mining facilities in Knoxville, Tennessee, along with adjacent land. This will contribute an additional 5 EH/s to the hashrate, fueled by the extra 85 MW operational capacity brought online by CleanSpark. The acquisition price constitutes $3,244,000 per megawatt, putting the entire purchase at a total of $27.5 million. The facilities can support power outputs in the range of 10 to 20 MW.
Hopefully this news will Knox-ville your socks off. 🧦
We’ve entered into definitive agreements to acquire 7 #Bitcoin mining facilities and certain associated land in the Knoxville, Tennessee, area with 85 MW of immediately available capacity, anticipated to add 5 EH/s to our… pic.twitter.com/x5X71YJtkX
— CleanSpark Inc. (@CleanSpark_Inc) September 11, 2024
Strategic Expansion and Increased Hashrate
CleanSpark’s approach prioritizes acquiring infrastructure at competitive rates, which aligns with this arrangement. No later than September 25, 2024, this business plans to close. Installing the newest generation S21 pro miners after the closure will result in a roughly 22% boost in CleanSpark’s hash rate. Consequently, by the end of 2024, the corporation hopes to attain 37 EH/s.
Last week, the company’s Dalton 4 campus went live, pushing its hashrate past 23 EH/s. Moreover, the energization of 50 MW of S21 pros in Sandersville is expected to increase the hashrate further.
The Knoxville acquisition complements earlier deals, such as the GRIID acquisition and a recent closing in Wyoming. This progression highlights CleanSpark’s deliberate timing of market purchases and its efficient use of acquired data center space.
Community Focus and Market Performance
CEO Zach Bradford emphasized the significance of Tennessee’s favorable political and energy environment, similar to Georgia’s, where CleanSpark has invested nearly $1 billion and operates about 500 MW. The company’s community-focused approach in Tennessee aims to replicate its successful strategy in Georgia. Bradford envisions that this expansion will benefit both the local power grid and surrounding communities.
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Despite these advancements, CleanSpark’s stock fell 4.5% to $9.93 per share, reflecting a year-to-date decline of 18%. Bernstein rated CleanSpark as “outperform,” noting its strong position among Bitcoin producers, alongside MARA and Core Scientific.
Bernstein highlighted CleanSpark’s efficiency in energy use and operational performance. In August, CleanSpark mined 478 BTC, increasing its total operating hash rate by 1.4 EH/s. The company’s Bitcoin holdings stood at 7,558 as of August 31.
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