425: CleanSpark Exceeds Mid-Year Target, Doubles Hashrate, and Advances GRIID Acquisition

CleanSpark announces it has exceeded its mid-year target of 20 EH/s in operational hashrate, mined 445 bitcoin in June, and is progressing with the acquisition of GRIID Infrastructure.

Summary

• CleanSpark released its unaudited bitcoin mining and operations update for June 2024.
• The company achieved and exceeded its mid-year target of 20 EH/s in operational hashrate.
• This milestone is attributed to the acquisition of five new bitcoin mining sites in Georgia.
• CleanSpark mined 445 bitcoin in June, bringing the year-to-date total to 3,614 bitcoin.
• As of June 30, 2024, CleanSpark held 6,591 bitcoin.
• The company sold 8.06 bitcoin in June at an average price of approximately $67,514 per bitcoin.
• The deployed fleet consists of 152,505 miners with a month-end fleet efficiency of 22.31 J/Th.
• CleanSpark executed a definitive agreement to acquire GRIID Infrastructure.
• The acquisition of five turnkey sites in Georgia provides 60 MW of immediately available data center infrastructure, expected to add 3.7 EH/s of hashrate.
• Approximately 1.7 EH/s of the new hashrate has been deployed as of June 30, with more expected in July.
• The Dalton expansion is progressing, with concrete pours completed and transformers set, expecting to operate at 2.4 EH/s by September 2024.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with significant growth in hashrate and strategic acquisitions. The company is exceeding targets and expanding its infrastructure, indicating strong performance and future potential.

Positives

• CleanSpark exceeded its mid-year hashrate target, demonstrating strong growth.
• The acquisition of new sites in Georgia expands CleanSpark's infrastructure and capacity.
• The Dalton expansion is progressing on schedule, promising further hashrate increases.
• The company's focus on maximizing efficiency at existing sites is a positive strategy.
• The interruptible-load designated power purchase agreements (PPAs) with load balancing capabilities are a unique benefit for utility providers and the power grid.

Risks

• The document contains forward-looking statements which are subject to risks and uncertainties.
• The timing and completion of the acquisition of Griid Infrastructure is not guaranteed.
• The timing and operational results of the Dalton expansion are subject to change.
• The electrical power available to CleanSpark's facilities may not increase as expected.
• The success of CleanSpark's digital currency mining activities is subject to volatility and unpredictable cycles.
• Increasing difficulty rates for bitcoin mining and bitcoin halving could impact profitability.
• New or additional governmental regulation could impact operations.
• Dependency on third-party power providers for expansion efforts poses a risk.
• The expectations of future revenue growth may not be realized.

Future Outlook

CleanSpark aims to reach 50 EH/s and beyond, focusing on maximizing efficiency at existing sites and expanding in Wyoming and Tennessee. The company anticipates additional hashrate coming online in July from the acquired Georgia sites and expects the Dalton expansion to be completed by September 2024.

Management Comments

• Zach Bradford, CEO, stated that surpassing 20 EH/s in operational hashrate is more than double the hashrate from December.
• Zach Bradford, CEO, emphasized the company's laser-focus on increasing bitcoin mining hashrate and associated revenues.

Industry Context

CleanSpark's focus on expanding its hashrate and infrastructure contrasts with some peers who are exploring alternative revenue streams. The acquisition of GRIID Infrastructure and expansion in Georgia, Wyoming, and Tennessee positions CleanSpark to capitalize on the growing demand for bitcoin mining capacity.

Comparison to Industry Standards

• CleanSpark's achievement of exceeding 20 EH/s places it among the leading publicly traded Bitcoin mining companies.
• Companies like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) are also pursuing aggressive hashrate growth strategies.
• CleanSpark's focus on low-carbon power aligns with increasing industry emphasis on sustainable mining practices.
• The company's fleet efficiency of 22.31 J/Th is competitive within the industry, indicating a focus on optimizing energy consumption.

Stakeholder Impact

• Shareholders will likely view the increased hashrate and strategic acquisitions positively.
• Employees may benefit from the company's growth and expansion.
• The company's focus on low-carbon power may appeal to environmentally conscious stakeholders.
• The company's growth could lead to increased demand for services from suppliers.

Next Steps

• Complete the acquisition of GRIID Infrastructure.
• Deploy additional hashrate from the acquired Georgia sites in July.
• Complete the Dalton expansion by September 2024.
• Continue maximizing efficiency at existing sites.
• Pursue opportunities in Wyoming and Tennessee.

Key Dates