CleanSpark Expands Bitcoin Mining Capacity with New Facility Purchases
CleanSpark Inc., a publicly-traded Bitcoin mining company, has recently announced its plans to acquire three Bitcoin mining facilities in Mississippi for $19.8 million in cash. These purchases will significantly increase CleanSpark’s mining capacity by 2.4 exahashes per second (EH/s) once fully integrated.
What is an Exahash?
An exahash (EH/s) is a measure of a Bitcoin mining machine’s processing power. It represents one quintillion hash calculations per second. The more exahashes a machine has, the more problems it can attempt to solve, increasing its chances of mining BTC.
The Importance of Timing
This expansion comes at a crucial time as the next Bitcoin halving is expected to occur in April. The halving event will reduce the rewards paid to miners for validating transactions from 6.25 to 3.125 BTC. This reduction in rewards aims to control inflation and limit the supply of new Bitcoins entering circulation.
Acquisition of Additional Mining Facility
CleanSpark has also entered agreements to acquire a mining facility under construction in Dalton, Georgia. This facility is projected to operate at 0.8 EH/s with an additional investment of approximately $6.9 million.
Significant Increase in Mining Capacity
Once the Mississippi and Georgia facilities are fully operational, CleanSpark’s current Bitcoin mining hashrate will grow from 10 EH/s to over 20 EH/s by early 2024. This nearly doubles their current capacity and positions them for further growth.
Benefits of Geographic Expansion
Headquartered in Utah, CleanSpark believes that expanding into Mississippi will add diversity and increase operational efficiencies. By clustering more mining in their existing Dalton footprint, the company can achieve best-in-class overhead costs.
Funding and Future Plans
CleanSpark plans to fund these acquisitions using its existing cash holdings. In addition, the company recently secured an agreement to purchase up to 160,000 next-generation bitcoin miners, which could potentially increase their mining capacity to over 50 EH/s in the future.
Hot Take: CleanSpark’s Strategic Expansion in Bitcoin Mining
CleanSpark’s recent acquisition of three Bitcoin mining facilities in Mississippi, along with their ongoing expansion in Georgia, demonstrates the company’s commitment to increasing its mining capacity. By strategically timing these purchases before the Bitcoin halving event, CleanSpark aims to position itself for continued success in the industry. With plans for further growth and diversification, CleanSpark is poised to maintain its competitive edge and achieve cost efficiencies at scale. The company’s focus on expanding its mining capabilities and securing next-generation bitcoin miners sets the stage for a promising future in the rapidly evolving world of cryptocurrency mining.
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