Cleanspark’s $27.5M expansion to boost Bitcoin mining power by 22%

CleanSpark is set to acquire seven Bitcoin mining sites in Tennessee, along with associated properties, for $27.5 million, according to a Sept. 11 statement.

The miner stated that these facilities have a combined power capacity of 85 megawatts (MW), which means the deal equates to about $324,000 per MW.

The company expects to finalize the acquisitions at each site by Sept. 25.

Hash rate increase

CleanSpark noted that the new sites are expected to reach a total hash rate of 5 exahashes per second (EH/s) once the latest S21 Pro miners are fully installed. This is projected to increase its current hash rate by over 22%.

Zach Bradford, CleanSpark’s CEO, said the company could reach 37 EH/s by the end of 2024 with the addition of the new facilities while also highlighting the firm’s progress in energizing its Dalton 4 campus last week, which helped it to exceed 23 EH/s.

Bradford also emphasized the company’s strategy of capitalizing on favorable market conditions for mining server purchases. He said:

“As we’ve previously discussed, our timing of the market on mining server purchases intentionally locked in low prices so that we could take advantage of opportunities like this and immediately fill acquired data center space. The GRIID acquisition, our recent closing in Wyoming, and now this new transaction represents the continued execution of our growth strategy. “

He further noted that Tennessee offers a political and energy environment similar to Georgia, where CleanSpark has already invested nearly $1 billion and operates close to 500 MW.

Despite the acquisition news, the company’s stock value declined. According to Yahoo Finance data, CLSK was trading down approximately 2%, at $9.19 as of press time.

Bitcoin production

This acquisition comes shortly after CleanSpark announced it had mined 478 BTC in August and increased its operational hashrate by 1.4 EH/s. The firm stated that it held 7,558 BT as of Aug. 31.

It added:

“The Company sold 2.5 bitcoin in August 2024 at an average price of approximately $56,729 per bitcoin. The average hashrate throughout the month of August was 21.3 EH/s resulting in an average of 15.43 bitcoin mined daily and a single day high of 17.88.”

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