Bitcoin Mining Firm CleanSpark Acquires $9.3 Million Georgia-based Facilities

Sustainable-oriented Bitcoin mining firm CleanSpark is set to acquire two Dalton-based mining facilities in Georgia. The addition of the ready-to-use units underscores the miner’s devotion to expanding when the mining sector is witnessing weighty investments. 

Adding the two mining facilities will increase CleanSpark’s mining capacity by almost one exahash per second. The deal, whose conclusion is scheduled to be concluded in the coming days, will increase CleaSpark’s overall mining capacity. The mining firm detailed that mining rigs from Turnkey Bitcoin Mining constitute a critical investment given that they contribute towards improving the hashes.

Hash represents the metric of how fast the mining rigs work, hence reinforcing the miner’s capability of becoming first in solving the complex mathematical problem needed to generate Bitcoin’s subsequent block. The acquisition is set to yield a higher hash rate for CleanSpark, thus improving its odds of securing Bitcoin rewards linked to the network’s subsequent block. Its accomplishment ultimately translates to better profits for the firm.

CleanSpark Edges Closer to 16EH/s Annual Target

CleanSpark chief executive Zach Bradford lauded the acquisition as it delivers additional infrastructure towards the firm’s 16 EH/s  year-end target. The Wednesday, June 21 press release indicated the addition of the facilities would position CleanSpark among the firms with the lead power-efficient mining relative to the energy-per-hash rate metric. 

The statement reveals that the two facilities feature 6000 S19J Pro+ and Antminer 219 XPs rigs that CleanSpark ordered at the onset of 2023. A review of the Hashrate Index shows that the latter equipment is among the most efficient, with a power averaging 21.5 joules per terahash (J/TH). 

The acquisition of the mining facilities affirms CleanSpark’s change of approach in 2023 to expand its mining operations. Revisiting the CleanSpark journey shows the firm’s expansion traces to April 2022, when it borrowed $35 million against its mining rigs. The borrowed funds from Trinity Capital sought to finance the acquisition of mining equipment in a three-year financing process. 

The loan advanced by Trinity Capital featured 3336 S19j Pro utilized by CleanSpark as collateral to secure the $35 million loan. The firm’s filing to the US Securities and Exchange Commission (SEC) indicated the rigs it used as collateral constituted barely an eighth of its 23000 miners fleet. The Las Vegas-headquartered miner admitted that it projected to add 12000 rigs by October. The Nasdaq-listed miner that trades under ticker symbol CLSK acknowledged receiving the initial $20 million. 

CleanSpark Accelerates Equipment Acquisition in Mid-2023

A review of 2023 shows that CleanSpark adopted a rapid acquisition drive to add Bitcoin miners. Bradford admits sustaining CleanSpark’s profitability is only possible through an increased hash rate while minimizing the costs incurred in energy bills, running, and maintaining the facility. This awareness informs CleanSpark capital budget decisions in acquiring new rigs that incurred over $200 million in 2023. 

An assessment of February activities reveals that CleanSpark spent $43.6 million to acquire 20000 S19J Pro+s equipment. The acquisition translated into $13.15 incurred per terahash ($/TH). 

In April, the Bradford-led miner would later spend  $144 million to acquire 45,000 S19 XPs translating to $23/TH. The bitcoin miner would later commit a portion of its existing machines fleet as collateral for additional new equipment financing. 

CleanSpark would reignite the acquisition with 12500 S19 XPs added in June for $40.5 million. Six thousand machines, whose cost averages $23/TH, were projected to arrive before July.

CleanSpark chief finance executive Gary Vecchiarelli indicated that the firm leveraged its existing cash reserves to pay for its latest acquisition. The executive CleanSpaA acquires ready-to-use equipment, thus expediting revenue generation.

Vecchiarelli indicated that the CleanSpark acquisition is inspired by the need to leverage opportunities created by the existing market conditions. The new equipment would help CleanSpark optimize production during the subsequent bitcoin halving. 

Expansion Activity Dominates the Mining Segment

Meanwhile, the mining segment attracts increased activity as miners embark on hash rate and equipment expansions. Such is observable with Irish Energy announcing plans to improve hash rate capacity. The Nasdaq-listed miner plans to expand its capacity by 63% to realize 9.1 EH/s by 2024. 

Iris Energy (IREN) revealed advances in building an 80MW data center in the race to complete the initial phase of the 600MW Childress site in Texas. The revelation fueled Its Iris Energy Shares to rally above 20%. 

Blockstream is expanding its mining equipment in readiness for Bitcoin halving scheduled for April 2024. It involves reducing the Bitcoin issuance rate by half, translating to 3.125 from the current 6.25 per block. A bullish market historically follows the reduction that occurs every four years. 

Editorial credit: rafapress / Shutterstock.com

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