CleanSpark has intensified its Bitcoin mining efforts by acquiring two new sites near Clinton, Mississippi.

On Sept. 17, the Bitcoin miner revealed that the new sites were purchased for $5.775 million and can support 16.5 megawatts.

According to the firm, the locations will house S21 Pro miners, providing a combined operating hash rate of roughly one exahash per second (EH/s). It added that it would receive the site turnkey-ready by Dec. 1. With these additions, the company’s data center capacity in Mississippi will grow to 60.5 MW.

Over the past week, CleanSpark’s operational capacity has surged by 38%, reaching 211.5 MW. This expansion supports the company’s goal of achieving a 37 EH/s capacity by the end of 2024 and 50 EH/s by 2025, according to CEO Zach Bradford.

In a separate update, CleanSpark confirmed the closure of its 45 MW site in Wyoming on Sept. 11, 2024. Once operational, this facility is projected to contribute an additional 3 EH/s. The site will feature immersion-cooled data centers supporting the latest S21 immersion XP miners.

Meanwhile, the latest news comes less than a week after CleanSpark announced it was purchasing seven mining facilities and associated land in Tennessee for $27.5 million.

Bitcoin mining focus

Mathew Schultz, CleanSpark’s co-founder, explained that these purchases demonstrated the firm’s continued focus on Bitcoin mining in contrast to rivals diversifying into artificial intelligence (AI).

According to Schultz, while many miners are shifting to AI or using resources for alternative tokens, CleanSpark is focused on expanding its Bitcoin mining capacity.

Over the past months, AI-focused miners have expanded their data center infrastructure to tap into the opportunities in the rapidly growing AI sector. Notably, a Bernstein report noted that investors have a stronger conviction in this class of miners due to their diversified revenue stream and potential upside.

However, Schultz appears unbothered by this, noting that the rising demand for Bitcoin and the firm’s strategy of adding megawatts and efficient exahash capacity could help it fulfill its promises.

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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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Bitcoin miner CleanSpark has agreed to acquire its rival GRIID Infrastructure for $155 million, according to a June 27 statement.

The companies also revealed that they entered an exclusive hosting agreement for all currently available power, of which 20 MW will be allocated to CleanSpark effective immediately.

This development arrives as BTC miners significantly struggle following the recent halving event that impacted their earnings. As a result, several miners have begun efforts to diversify their revenue streams by mining altcoins and pivoting towards AI.

Acquisition details

Under this deal, CleanSpark will take on all of GRIID’s existing debt and obligations. Additionally, the miner has provided GRIID with a $5 million working capital loan and a bridge loan of about $50.9 million to cover certain obligations at the time of signing.

CleanSpark CEO Zach Bradford stated that this acquisition would help the firm replicate its success in Georgia over the next three years in Tennessee. He commented:

“[This acquisition] will enable us to exceed 100 megawatts in Tennessee by the end of this year and grow to 200 megawatts in 2025, eventually surpassing 400 megawatts in 2026.”

Both companies’ Boards of Directors have unanimously approved the transaction, which is expected to close in the third quarter of 2024. However, the acquisition still requires approval from GRIID shareholders and must meet other customary closing conditions.

When the deal is completed, GRIID shareholders will receive CleanSpark common stock. The exchange ratio will be calculated by dividing the total merger consideration by the number of GRIID common shares outstanding at the merger’s closing.

GRIID was established in 2018 and subsequently began mining in 2019. The company runs four mining facilities in Watertown, New York, and Limestone, Maynardville, and Lenoir City, Tennessee. Additionally, it has a Research and Development Center in Austin, Texas, and a Development, Deployment, and Equipment Repair Center in Rutledge, Tennessee.

Following the news, GRIID shares fell around 50%, while CleanSpark’s rose nearly 4%.