425: CleanSpark Expands Bitcoin Mining Operations with Wyoming Acquisition and Power Contracts

CleanSpark finalizes the acquisition of a Bitcoin mining site in Wyoming and secures 75 MW of power contracts, aiming to boost its hashrate by over 5 EH/s.

Summary

• CleanSpark has completed the acquisition of its first Bitcoin mining site in Cheyenne, Wyoming.
• The company has also executed 75 MW of power contracts to support its expansion in the state.
• The initial 30 MW data center is expected to add over 2 EH/s to CleanSpark's hashrate and is planned to be operational before the end of 2024.
• CleanSpark intends to deploy the latest S21 immersion XPs at the Cheyenne location.
• A second site with 45 MW is expected to contribute an additional 3 EH/s to the company's hashrate.
• CleanSpark's Bitcoin mining portfolio now includes twelve data centers in Georgia, three in Mississippi, one in Wyoming, and co-locations in Tennessee and New York.
• The company anticipates further growth in its operational hashrate upon completion of the pending acquisition of GRIID Infrastructure.

Sentiment

Score: 8

Explanation: The announcement is positive due to the company's expansion into a supportive state, the increase in hashrate, and the deployment of efficient mining technology. The forward-looking statements and associated risks temper the overall sentiment slightly.

Positives

• Expansion into Wyoming, a state supportive of the Bitcoin mining industry, aligns with CleanSpark's growth strategy.
• The acquisition and power contracts will significantly increase CleanSpark's hashrate.
• Deployment of the latest S21 immersion XPs will improve mining efficiency.
• The company's diversified mining portfolio reduces geographical risk.
• The pending acquisition of GRIID Infrastructure is expected to further boost CleanSpark's operational hashrate.

Risks

• The success of the expansion depends on the timely deployment of equipment and the availability of electrical power.
• The volatile nature of the Bitcoin market and increasing difficulty rates for mining pose ongoing challenges.
• New or additional governmental regulations could impact the company's operations.
• Dependency on third-party power providers for expansion efforts could create vulnerabilities.
• The company's future revenue growth may not be realized as expected.

Future Outlook

CleanSpark plans to continue expanding its footprint in Wyoming and building upon its existing operational hashrate, particularly upon completion of the pending acquisition of GRIID Infrastructure.

Management Comments

• Zach Bradford, CEO, stated that CleanSpark plans to grow its footprint beyond Cheyenne, throughout the state of Wyoming, working with local, state, and national leaders.

Industry Context

The announcement comes on the heels of the University of Wyoming launching its Bitcoin Research Institute and Senator Lummis introducing the BITCOIN Act, indicating a supportive environment for the Bitcoin mining industry in the state.

Comparison to Industry Standards

• CleanSpark's expansion into Wyoming mirrors the strategies of other major Bitcoin mining companies like Marathon Digital Holdings and Riot Platforms, who are also focusing on increasing their hashrate and securing access to low-cost power.
• The deployment of S21 immersion XPs aligns with the industry trend of adopting more efficient mining hardware to reduce energy consumption and increase profitability.
• CleanSpark's diversified portfolio of data centers across multiple states provides a competitive advantage compared to companies concentrated in a single location, mitigating risks associated with regional power outages or regulatory changes.

Stakeholder Impact

• Shareholders can expect increased hashrate and potential revenue growth.
• Employees may see new job opportunities in Wyoming.
• The local community in Cheyenne, Wyoming, may benefit from economic development and job creation.
• Suppliers of mining equipment and power solutions may see increased demand from CleanSpark.

Next Steps

• Groundbreaking for the initial 30 MW data center is planned for an immediate start.
• CleanSpark intends to deploy the all-new S21 immersion XPs.
• The Company is actively working to expand the available power at this site to further increase operational capacity.
• CleanSpark is progressing on the close of the underlying real estate of a second site, which will bring an additional 45 MW online in Wyoming.
• The company expects to continue building upon the existing operational hashrate in Tennessee upon completion of the pending acquisition of GRIID Infrastructure.

Key Dates