CleanSpark, a U.S.-based Bitcoin mining firm, has ramped up its hash rate to 8 EH/s after kicking off the second phase of operations at its mining campus in Georgia.
The company invested nearly $55 million to expand the Washington-based facility, which now has a total power capacity of 86 megawatts. The infrastructure upgrades include additional mining machines and construction work.
CleanSpark Chairman Matthew Schultz said the new facility will nearly double the city’s annual budget from $16 million to over $30 million. The company agreed to purchase power from the city at a “cost-plus level” rather than competing with local ratepayers.
Aggressive Expansion Strategy
CleanSpark has pursued an aggressive growth strategy this year despite the ongoing crypto winter. The firm recently acquired two Bitcoin mining facilities in Dalton, Georgia, which are expected to contribute an additional 1 EH/s to its hash rate.
Overall, CleanSpark has invested over $150 million to build up its mining infrastructure in 2022. The company decided to sell some of its Bitcoin holdings between $40,000 and $60,000 and reallocate the capital for more efficient rigs and facilities.
With the next Bitcoin halving approaching, CleanSpark said it has started holding back more Bitcoin, believing “running into this halving event just reaps rewards.”
For 2024, CleanSpark CEO Zach Bradford said the company will be looking for merger and acquisition opportunities, especially from mining facilities that “can’t stay operating” post-halving.
In summary, CleanSpark has significantly expanded its Bitcoin mining operations after kicking off the second phase of its Washington campus. The company’s rapid infrastructure build-up and strategy of reallocating capital from Bitcoin sales shows its aggressive approach during the bear market.
However, CleanSpark will face intense competition for cheap power and efficient mining rigs as the industry consolidates post-halving. Its ability to find accretive acquisitions and optimize operations will determine its long-term success.