CleanSpark Want To Double Its Bitcoin Mining Capacity By A $144.9 Million Deal

Key Points:

• CleanSpark invested $145 million on 45,000 Bitcoin mining computers.
• The business intends to more than treble its mining capacity by the end of the year.
• The mining units are all Antminer S19 XPs.

CleanSpark purchased 45,000 brand new Bitmain Antminer S19 XPs for $144.9 million, which would nearly quadruple its present processing capacity, or hashrate, if installed, according to a press statement issued on Tuesday.

The manufacturer expects all units to be available for distribution by the end of September, adding over 6.3 exahashes per second (EH/s) of computational power to the company’s current hashrate of 6.7 EH/s, a 95% increase.

This is the miner’s newest purchase of troubled properties, which began in the summer of 2022.

The purchase comes as Bitcoin crosses $30,000 for the first time in over a year, potentially reviving the Bitcoin mining industry.

CleanSpark CEO Zach Bradford stated:

“As bitcoin’s halving draws closer, our focus on operational efficiency, our technical expertise, and our treasury management strategy, will all play a crucial role in solidifying CleanSpark’s position among the top bitcoin mining companies in America.”

The manufacturer will prepare 25,000 of the 45,000 units for delivery in August, with the other 20,000 units slated to be available in September, according to the purchase agreement.

According to the news release, CleanSpark mines bitcoin primarily using low-carbon energy sources that account for more than 90% of its energy mix, and the firm employs a “balanced capital management approach” by selling part of its mined bitcoin to reinvest in expansion.

By the end of the year, CleanSpark hopes to have 16 EH/s of processing power. It reduced its 2023 projection from 22.4 EH/s in December 2022, citing building delays by one of its partners, Lancium. Another 2.44 EH/s of equipment purchased at a discount in February is planned to be operational at a Washington plant later in the second quarter.

If all of the machines went live today, CleanSpark would control around 5% of Bitcoin’s worldwide processing power.

All of the purchased machines will also be deployed at the company’s bitcoin mining operation in Sandersville, Georgia, which is now undergoing a 150-megawatt (MW) expansion. The machines will be deployed in phases when they arrive on-site and additional rack space becomes available, with all machines scheduled to be completely operational by the end of the year.

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Harold

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