CleanSpark Expands Operations with Acquisition of Seven Tennessee Mining Sites

CleanSpark has announced its decision to acquire additional cryptocurrency mining properties in Tennessee, following its previous purchase of facilities from GRIID Infrastructure.

The United States-based Bitcoin miner CleanSpark is set to acquire seven cryptocurrency mining facilities along with their associated land in the Knoxville area of Tennessee. The acquisitions are projected to increase CleanSpark’s hashrate by 22%.

Reports indicate that the company is purchasing these new sites from Exponential Digital for $27.5 million in cash, with the transaction expected to finalize by September 25.

Boosting Hashrate Capacity

The newly acquired facilities will have capacities varying from 10 megawatts (MW) to 20 MW, aggregating to a total of 85 MW. Upon installation of Bitmain S21 pro ASIC miners, CleanSpark expects these facilities to deliver a combined hashrate of 5 exahashes per second (EH/s). CleanSpark’s CEO, Zach Bradford, conveyed in a statement:

“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.”

Bradford noted that the purchase of ASICs was strategically timed to secure favorable prices, with plans for their prompt installation at the new sites.

He also expressed CleanSpark’s commitment to demonstrating how Bitcoin mining can positively impact local power grids and communities. However, the operations of Exponential Digital in Tennessee have faced criticism regarding noise disturbances and their perceived lack of contribution to the local tax base.

Continued Growth in Operations

In June, CleanSpark had an agreement to acquire GRIID Infrastructure, encompassing its facilities in Tennessee. That all-stock deal was valued at $155 million and is anticipated to finalize this month.

Additionally, CleanSpark launched the fourth campus at its facilities in Dalton, Georgia, in early September, and recently added 50 MW of capacity to its Sandersville, Georgia, site. The company has invested nearly $1 billion in total and operates 500 MW in Georgia.

In August, CleanSpark mined 478 Bitcoin (BTC), selling 2.5 BTC at an average price of $56,729, resulting in a remaining inventory of 7,558 BTC. The company reported an average hashrate of 21.3 EH/s for that month, and at the end of Q2 2024, CleanSpark achieved the position of the second-largest Bitcoin miner by market capitalization.