Bitcoin mining firm CleanSpark Inc. said it has agreed to acquire seven Bitcoin mining facilities and land in the Knoxville, Tennessee area for $27.5 million.
In an announcement, CleanSpark said the acquisition aligns with its overarching strategy to expand its mining operations in regions with favourable political and energy environments.
Tennessee, with similarities to Georgia, is where the company has made substantial investments, is being seen as an ideal location for this latest expansion.
CleanSpark Expands Hashrate Capacity
CleanSpark said it plans on completing the acquisition of each site on or before September 25, this year.
Following the completion of the acquisition the seven facilities combined will add a total capacity of 85 megawatts (MW), with individual sites ranging in size from 10 MW to 20 MW. This new infrastructure is expected to boost CleanSpark’s mining capabilities.
The company projects that the hash rate from the acquired facilities will reach 5 exahashes per second (EH/s) once the latest generation S21 Pro miners are installed.
This increase would mean more than a 22 percent boost to CleanSpark’s current mining capacity. The S21 Pro miners, which are already on-site, will be installed promptly after the acquisition is finalized, allowing for an immediate enhancement in the company’s hash rate.
Accelerating Toward 37 EH/s by Year-End
CleanSpark went on to add it has been steadily growing its mining capacity throughout 2024, and this acquisition marks another milestone in its expansion.
The firm’s CEO Zach Bradford said that the company recently hit 23 EH/s, due to the energization of its Dalton 4 campus last week.
CleanSpark expects further hash rate increases as 50 MW of S21 Pro miners are activated at the company’s Sandersville facility soon.
Bradford highlights the importance of timing in the firm’s strategy. By acquiring mining servers at favourable market conditions, CleanSpark said it is positioning itself to quickly capitalize on opportunities like the Knoxville acquisition.
“With this additional 5 EH/s expected to begin hashing over the coming weeks, we now expect to achieve 37 EH/s before the end of 2024,” said Bradford.
Focus is on Tennessee and Beyond
CleanSpark’s CEO explains Tennessee’s political and energy landscape makes it an attractive region for its continued expansion.
In Georgia, the firm has deployed nearly $1 billion in capital and operates close to 500 MW of mining capacity, serving as a model for its strategy in Tennessee.
“Our approach in Tennessee will mirror the community-focused strategy we’ve implemented in Georgia. We’re committed to demonstrating how Bitcoin mining can benefit both the local power grid and the communities where we operate,” said Bradford.
This latest acquisition follows CleanSpark’s recent high-profile moves, including the acquisition of GRIID’s mining operations and the completion of its Wyoming expansion.
Bitcoin Mining Revenue Hit All-Year Low in August
The latest data shows that Bitcoin miners have been facing their most challenging mining revenue of the year in August. Last month, the revenue was $99.75 million less than in July, marking the lowest since September 2023.
Per data from Bitbo, miners’ revenue slumped to $827.56 million last month, from $927.35 million in profits in July 2024. This has marked one of the worst revenue months for miners, underscoring the impact of Bitcoin’s fourth halving in April.
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