CleanSpark Inc., a Bitcoin mining company, has announced that it has agreed to purchase seven Bitcoin mining facilities and land in the Knoxville, Tennessee, area for $27.5 million.
CleanSpark stated in an announcement that the acquisition is consistent with its overarching strategy to expand its mining operations in regions with favorable political and energy environments.
The company has made substantial investments in Tennessee, considered an excellent location for this latest expansion due to its similarities to Georgia.
CleanSpark Enhances Hashrate Capacity
CleanSpark intends to finalize the acquisition of each site by September 25, 2019.
The combined capacity of the seven facilities will be 85 megawatts (MW) upon the acquisition’sacquisition’s completion. The individual sites range in size from 10 MW to 20 MW. CleanSpark’sCleanSpark’s mining capabilities are anticipated to be enhanced by this new infrastructure.
The company anticipates that the hash rate of the acquired facilities will exceed five exahashes per second (EH/s) upon the installation of the most recent generation of S21 Pro miners.
This increase would increase more than 22% of CleanSpark’s current mining capacity. The S21 Pro miners, which are currently on-site, will be deployed promptly upon the completion of the acquisition, thereby enabling an immediate increase in the company’s hash rate.
Increasing the Rate of Progress to 37 EH/s by the End of the Year
CleanSpark continued to state that it has been consistently expanding its mining capacity in 2024, and this acquisition represents another significant milestone in its expansion.
The company’s CEO, Zach Bradford, confirmed that it recently achieved 23 EH/s due to the energization of its Dalton 4 campus just last week.
Further hash rate increases are anticipated by CleanSpark as 50 MW of S21 Pro miners will be activated at the company’s Sandersville facility shortly.
Bradford emphasizes the significance of timing in the organization’s strategy. CleanSpark stated that it is preparing to rapidly capitalize on opportunities such as the Knoxville acquisition by acquiring mining servers at favorable market conditions.
Bradford stated that the anticipated hashing of the additional 5 EH/s in the upcoming weeks will result in 37 EH/s by the end of 2024.
The primary focus is on Tennessee and beyond
The CEO of CleanSpark elucidates why Tennessee’s political and energy landscape is an appealing region for the company’s ongoing growth.
The company has deployed nearly $1 billion in capital and operates almost 500 MW of mining capacity in Georgia, a model for its strategy in Tennessee.
“Our approach in Tennessee will mirror the community-focused strategy we’ve implemented in Georgia. We’re committed to demonstrating how Bitcoin mining can benefit both the local power grid and the communities where we operate,” said Bradford.
This latest acquisition follows CleanSpark’s recent high-profile maneuvers, including the acquisition of GRIID’s mining operations and the completion of its Wyoming expansion.
In August, the Revenue Generated by Bitcoin Mining Reached an all-time low
According to the most recent data, Bitcoin miners encountered their most difficult mining revenue of the year in August. The revenue was $99.75 million lower than in July last month, the weakest since September 2023.
Miners revenue plunged to $827.56 million last month, down from $927.35 million in profits in July 2024, according to data from Bitbo. This has marked one of the worst revenue months for miners, underscoring the impact of Bitcoin’sBitcoin’s fourth halving in April.