CleanSpark to double hash rate with new mining facility acquisitions ahead of Bitcoin halving
Publicly traded Bitcoin (BTC) mining firm CleanSpark has expanded its operations through the acquisition of four new mining facilities, significantly increasing its hashing power ahead of the anticipated Bitcoin halving event in April 2024.
On Feb. 6, CleanSpark announced the purchase of three Bitcoin mining facilities in Mississippi for a total of $19.8 million, instantly adding 2.4 exahashes per second (EH/s) to its current hash rate upon completion of the deal. Additionally, a facility in Dalton, Georgia, was acquired for $6.9 million and is expected to contribute an additional 0.8 EH/s. This Georgian facility is currently under construction and is projected to be operational by April 2024.
The company also highlighted the upcoming energization of its Sandersville expansion, which will further enhance its hash rate by six EH/s. These developments are anticipated to double CleanSpark’s operating hash rate from 10 EH/s to an impressive 20 EH/s in the first half of 2024.
The timing of these acquisitions is critical as they precede the Bitcoin halving event, a crucial event in the cryptocurrency world that reduces the reward for mining Bitcoin, thereby affecting miners’ profitability. This event is scheduled for late April when the mining reward will decrease from 6.25 BTC to 3.125 BTC.
Zach Bradford, CleanSpark’s CEO, commented on the acquisitions, stating that they “improve our operating efficiencies as we prepare for the halving.” Following the announcement, CleanSpark’s shares experienced a noteworthy 12% increase, reflecting investor confidence in the company’s growth strategy.
Notably, the share prices of competitors Marathon Digital Holdings and Riot Platforms also saw increases, indicating a positive market response to CleanSpark’s expansion. Despite a 20% decrease in year-to-date share price, CleanSpark’s aggressive expansion and strategic investments have positioned it favorably within the competitive Bitcoin mining industry.
Previously, CleanSpark had announced an ambitious plan to acquire up to 160,000 next-generation Bitcoin miners, aiming to significantly increase its mining capacity. In addition, Bradford had outlined in an interview with Bloomberg the company’s strategy to establish its own trading desk in 2024. The initiative is designed to optimize profitability from their substantial Bitcoin holdings, marking a pivotal step in CleanSpark’s expansion and operational efficiency in the cryptocurrency mining sector.
