Bitcoin mining company CleanSpark Inc. has announced its plans to acquire seven Bitcoin mining facilities and associated land in Knoxville, Tennessee, for $27.5 million. The acquisition aligns with CleanSpark’s broader strategy of expanding its operations in regions with favorable political and energy conditions. Tennessee, with characteristics similar to Georgia where the company has made significant investments, is seen as a strategic location for its ongoing growth.
Expansion of Hashrate Capacity
CleanSpark aims to complete the acquisition of the mining facilities by September 25 of this year. Once finalized, the seven sites, ranging in size from 10 to 20 megawatts (MW), will collectively contribute an additional 85 MW of energy capacity to the company’s mining infrastructure. This expansion is set to significantly enhance CleanSpark’s mining operations, increasing its overall hashrate, or computing power.
Once the facilities are operational, CleanSpark expects the hashrate from these newly acquired sites to reach 5 exahashes per second (EH/s) after the installation of next-generation S21 Pro miners. These miners, which are already on-site, will be installed promptly following the acquisition, providing an immediate boost to the company’s mining capacity. The 5 EH/s increase represents a more than 22% expansion of CleanSpark’s current capacity.
Accelerating Towards 37 EH/s by Year-End
This acquisition is another milestone in CleanSpark’s rapid expansion throughout 2024. The company’s CEO, Zach Bradford, recently reported that CleanSpark’s total hashrate reached 23 EH/s, thanks to the energization of its Dalton 4 campus last week. The company also expects further growth with the activation of 50 MW of S21 Pro miners at its Sandersville facility in the near future.
Bradford emphasized the importance of strategic timing in acquiring mining equipment under favorable market conditions. CleanSpark’s ability to capitalize on opportunities like the Knoxville acquisition will help accelerate the company’s growth. With an additional 5 EH/s expected to come online in the coming weeks, CleanSpark is on track to achieve 37 EH/s before the end of 2024, according to Bradford.
Tennessee Expansion and Beyond
CleanSpark’s focus on Tennessee is part of its broader strategy, mirroring its successful operations in Georgia. In Georgia, the firm has invested nearly $1 billion in capital and operates approximately 500 MW of mining capacity. Bradford explained that the company’s Tennessee expansion would follow a similar community-centered approach, demonstrating how Bitcoin mining can benefit local power grids and communities.
“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 acquisition follows CleanSpark’s recent high-profile moves, including its purchase of GRIID’s mining operations and the completion of its expansion in Wyoming.
Bitcoin Mining Revenue Hits Yearly Low in August
Despite CleanSpark’s expansion efforts, Bitcoin miners have faced a challenging revenue environment. Data from Bitbo shows that Bitcoin mining revenue hit a yearly low in August, with total earnings dropping to $827.56 million, down from $927.35 million in July. The $99.75 million decline marked the lowest revenue month for Bitcoin miners since September 2023. This slump highlights the ongoing challenges miners face following Bitcoin’s fourth halving in April, which has reduced mining rewards and placed additional pressure on profitability.
