CleanSpark Acquires 85MW Bitcoin Mining Sites for $27.5M

CleanSpark is set to acquire seven bitcoin mining sites in Tennessee totaling 85 megawatts (MW) of power capacity as well as associated properties for cash payments of $27.5 million.

CleanSpark said on Wednesday that it expects to close the transaction by Sep. 25 and install 5 EH/s of newly arrived Antminer S21 Pros across the seven facilities. The deal marks 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’ve 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 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.”

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.

The 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 Oct. 28 as the date for shareholders to vote on the proposed merger with CleanSpark. CleanSpark recently scheduled a special shareholder meeting on Oct. 25 to vote on a proposal doubling its authorized shares for issuance.