In a major expansion move, CleanSpark Inc. (NASDAQ:CLSK) is slated to acquire seven Bitcoin (CRYPTO: BTC) mining facilities in Knoxville, Tennessee, expanding the miner's current hashrate by over 22%.
What Happened: CleanSpark's acquisition includes the associated land and is projected to enhance its current hashrate by over 22%, reaching 5 exahashes per second (EH/s) once the latest S21 Pro miners are installed, The Block reported.
The expansion will be facilitated immediately after the closing of each site, with the seven sites totaling 85 MW and ranging in size from 10 MW to 20 MW.
"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," stated CleanSpark CEO Zach Bradford as reported by theBlock.
He further noted that the company's strategy is to leverage the political and energy environment in Tennessee, similar to Georgia, where CleanSpark has deployed nearly $1 billion of capital and operates nearly 500 MW.
Also Read: CleanSpark Nears Death Cross As Bitcoin Production Slows: More Pain Ahead?
Why It Matters: This acquisition is a strategic move for CleanSpark, which is already one of the three largest bitcoin producers, alongside MARA Holdings (NASDAQ:MARA) and Core Scientific (NASDAQ:CORZ).
The deal also underscores the company's commitment to its growth strategy, leveraging favorable political and energy environments to expand its operations. The expected increase in hashrate will significantly boost the company's bitcoin production, potentially leading to increased revenues and profitability in the long run.
In its latest earnings report, CleanSpark reported an increase of 129% in its quarterly revenue coupled with a 24% increase in hashrate during the quarter.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
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