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CleanSpark to Buy Seven Bitcoin Mining Facilities in Tennessee

AuthorSyed Ali Haider
Crypto News Author
Fact Checked by Joshua Downes
Last updated: September 12, 2024
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CleanSpark to Buy Seven Bitcoin Mining Facilities in Tennessee

Highlights:

  • CleanSpark will purchase seven Tennessee mining sites for $27.5 million to enhance efficiency.
  • New sites will add 85 MW capacity, boosting hashrate by 22%. 
  • Bitcoin miners face increased competition and challenges due to falling BTC prices and rising hashrates.

On Wednesday, U.S. Bitcoin miner CleanSpark announced it will acquire seven Bitcoin (BTC) mining facilities and associated land in Knoxville, Tennessee, for $27.5 million in cash. The company said the acquisition supports its broader strategy to expand mining operations in regions with favorable political and energy conditions.

CleanSpark’s Acquisition to Boost Hashrate by 22%

CleanSpark plans to complete the acquisition by September 25 this year. Once completed, the seven facilities will add a combined capacity of 85 megawatts (MW), with individual sites ranging from 10 MW to 20 MW. This new infrastructure will enhance CleanSpark’s mining capabilities. The platform anticipates that the hash rate from the acquired facilities will hit 5 exahashes per second (EH/s) once the latest generation S21 Pro miners are installed. This will increase CleanSpark’s current hashrate by more than 22%.

CleanSpark CEO Zach Bradford said:

“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.”

Further, he added that the purchase of the ASICs was timed to lock in low prices and will be installed “promptly” at CleanSpark’s new sites. Bradford said CleanSpark will “continue showcasing how Bitcoin benefits local power grids and communities.” However, Exponential Digital’s Tennessee operations have faced criticism for noise and lack of contribution to the local tax base.

In August, CleanSpark mined 478 BTC and sold 2.5 BTC at an average price of $56,729. This left the company with 7,558 BTC. Its average hashrate for the month was 21.3 EH/s. As of the end of Q2 2024, CleanSpark was the second-largest Bitcoin miner by market cap.

At publication time, CleanSpark’s stock (ticker: CLSK) was down 4.5% to $9.92 per share. Year-to-date, the stock has fallen 18%.

CleanSpark Expands in Tennessee, Follows Georgia Approach

CleanSpark’s CEO explained that Tennessee’s political and energy landscape makes it an appealing area for expansion. The company has invested nearly $1 billion and operates 500 MW in Georgia, setting a model for its strategy in Tennessee. In the first week of September, the company activated its fourth campus at the Dalton, Georgia, facilities and added 50 MW of capacity to its Sandersville, Georgia, site. 

Bradford said:

“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.”

In the past two years, Bitcoin miners have increasingly moved to East Tennessee. The region offers affordable land and favorable mining regulations. Most notably, its extensive hydroelectric infrastructure supports large-scale Bitcoin mining.

BTC Mining Revenue Hits Yearly Low in August

The latest data shows that Bitcoin miners faced their toughest revenue month of the year in August. Last month’s revenue was $99.75 million lower than in July, representing the lowest level since September 2023.

According to Bitbo data, miners’ revenue dropped to $827.56 million last month, down from $927.35 million in July 2024. This decline highlights one of the toughest revenue months for miners, reflecting the effects of Bitcoin’s fourth halving in April. When mining difficulty is high, more miners compete, raising the energy and resources required to mine new blocks. If Bitcoin’s price falls during this period, it can become less profitable for miners.

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