CleanSpark to Expand Mining Facilities, Doubling Hashrate Potential
CleanSpark, a bitcoin mining company, has announced plans to acquire new mining facilities that could potentially double its hashrate in the first half of this year. As a result, CleanSpark’s shares rose by 12%. The company will purchase three “turnkey” sites in Mississippi for $19.8 million in cash, allowing them to easily connect their existing hardware. They also plan to acquire a facility in Dalton, Georgia, with an initial cash payment of $3.4 million and an additional investment of $3.5 million to complete the project.
CleanSpark’s CEO, Zachary Bradford, stated that the move into Mississippi aims to grow their operations and diversify their data center portfolio while leveraging their experience in southeastern power markets. The acquisition is expected to support about 14% of the company’s revenue shortly after closing.
Consolidation Expected in Bitcoin Mining Industry
The bitcoin mining industry is anticipating consolidation as miner rewards are set to be halved after the upcoming bitcoin halving event. CleanSpark expects some miners, especially smaller ones with higher costs or less efficient hardware, to exit the market. The company has been actively acquiring mining machines and is now focusing on finding suitable facilities for its operations.
Bitcoin miners typically benefit from price increases in the cryptocurrency as it leads to higher mining revenue. In 2023, mining stocks outperformed bitcoin itself, with CleanSpark gaining about 440% compared to bitcoin’s 157% increase.
Hot Take: CleanSpark Expands Mining Capabilities for Future Growth
CleanSpark’s decision to acquire new mining facilities demonstrates its commitment to expanding its operations and improving its hashrate potential. By strategically investing in turnkey sites in Mississippi and a facility in Georgia, the company aims to diversify its data center portfolio while capitalizing on synergies in the southeastern power markets. This expansion comes at a crucial time for the bitcoin mining industry, as consolidation is expected due to upcoming changes in miner rewards. CleanSpark’s proactive approach positions them well for future growth and profitability in the evolving crypto landscape.
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