CleanSpark Acquires 85MW Bitcoin Mining Sites for $27.5M

CleanSpark plans to acquire seven bitcoin mining sites in Tennessee, totaling 85 megawatts (MW) of power capacity, along with associated properties, for cash payments of $27.5 million.

CleanSpark announced on Wednesday that it expects to close the transaction by September 25 and install 5 EH/s of newly arrived Antminer S21 Pros across the seven facilities. This deal represents the latest industry consolidation, as bitcoin's daily mining profitability remains stagnant at $40/PH/s.

"With the energization of our Dalton 4 campus last week, we have already surpassed 23 EH/s and expect more hashrate to come online this week from the energization of 50 MW of S21 pros in Sandersville," said CleanSpark CEO Zach Bradford. "With an 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."

According to SEC filings related to the transaction, CleanSpark signed definitive agreements with Exponential Digital LLC to buy out its stakes in seven wholly-owned subsidiaries in Tennessee for $25 million.

The director associated with Exponential Digital is Jialin (Gavin) Qu, co-founder of Kungsleden who becomes chairman of Cathedra Bitcoin after its merger with Kungsleden.

Additionally, CleanSpark purchased the properties associated with the seven sites from a Texas-registered company called US Farms & Mining.

This move doubles down on CleanSpark's expansion into Tennessee following its all-stock merger and acquisition with Griid, which also has operating power capacities in the state.

On Tuesday, Griid set October 28 as the date for shareholders to vote on the proposed merger with CleanSpark. CleanSpark recently scheduled a special shareholder meeting on October 25 to vote on a proposal doubling its authorized shares for issuance.