CleanSpark, a crypto mining firm, is embarking on an ambitious infrastructure expansion plan in the United States with the acquisition of two Bitcoin mining facilities in a $9.3 million cash deal. The company has entered into a definitive agreement to purchase turnkey Bitcoin mining campuses located in Dalton, Georgia.
The newly acquired facilities will house more than 6,000 Antminer S19 XPs and S19J Pro+s, contributing an estimated 1 exahash per second (EH/s) to CleanSpark’s overall hashrate. Zach Bradford, the CEO of CleanSpark, expressed confidence that this additional infrastructure will help the company achieve its target of reaching 16 EH/s by the end of the year.
Despite a recent slump in BTC mining profitability during the bear market, CleanSpark has been actively pursuing expansion opportunities through various acquisitions. In April, the company made headlines with its purchase of 45,000 Antminer S19 XP rigs for $144.9 million, which is expected to bring an additional 6.4 EH/s of mining power.
Earlier in February, CleanSpark added 20,000 new Antminer S19j Pro+ units to its portfolio at a cost of $43.6 million, contributing 2.44 EH/s to its computing power. Notably, the company also announced a $16 million expansion at its Georgia facility, introducing an additional 15,000 rigs.
CleanSpark expansions
CleanSpark’s ongoing expansion efforts demonstrate a willingness to overlook the current decline in Bitcoin mining profitability. At present, the profitability stands at around $0.066 per TH/s per day, a significant drop from its peak of $0.40 in June 2019, as per data from Hashrate Index.
Despite the current landscape, CleanSpark is positioning itself for the next Bitcoin halving, projected to occur between April and May 2024. This event will reduce Bitcoin block rewards to 3.125 BTC and historically has led to price spikes due to a decrease in the cryptocurrency’s supply combined with steady demand. By strategically expanding its fleet, CleanSpark aims to capitalize on the potential opportunities arising from the halving.
Gary Vecchiarelli, the CFO of CleanSpark, emphasized the company’s proactive approach. This forward-thinking mindset aligns with CleanSpark’s vision for growth and solidifies its position in the evolving crypto-mining industry.
“We continue to make use of opportunities created by current market conditions to prepare for next year’s Bitcoin halving.”
Overall, the Company’s acquisition of two Bitcoin mining facilities highlights its commitment to expanding its infrastructure rapidly. By strategically increasing its mining power, the company aims to position itself for future success, capitalizing on potential opportunities presented by the next Bitcoin halving.
