Bitcoin miner CleanSpark has reached a significant milestone in its mining operations in Washington, Georgia. The company has successfully completed the second phase of its mining campus, which has resulted in the company reaching a hash rate of 8.0 exahashes per second (EH/s). This is halfway towards the company’s year-end target of 16 EH/s.
The second phase of the mining campus involved a substantial investment of nearly $55 million. This investment was used for various purposes such as construction, infrastructure, and purchasing new mining machines. In August 2022, CleanSpark acquired the facility for $25.1 million, which already had 15,000 mining machines with a power capacity of 50 megawatts (MW). With the new investment, the company has expanded its total power capacity to 86 MW.
During an investors’ conference on July 13, CleanSpark’s executive chairman, Matthew Schultz, highlighted the significant impact of the mining operations on the city of Washington. Schultz explained that the collaboration with city officials and the community has resulted in the city’s annual budget nearly doubling year-over-year. The company has bought power from the city instead of competing with ratepayers, which has contributed to the city’s increased budget. Last year, the city had a budget of about $16 million, whereas this year it has exceeded $30 million.
CleanSpark has been actively pursuing expansion despite the current bear market. In addition to the mining campus in Washington, the company recently acquired mining facilities in Dalton, Georgia. The new campus in Dalton will house 6,000 Antminer S19 XPs and S19j Pro+s, which are expected to add approximately 1 EH/s to CleanSpark’s hash rate. Schultz emphasized the advantages of operating in Georgia, stating that it predominantly relies on nuclear power and is a net exporter of electricity.
The company has also made substantial investments in building its computer power infrastructure. Schultz revealed that the strategy was formulated in November 2021 when numerous Bitcoin mining companies placed billion-dollar orders for mining machines. Anticipating a potential pullback in Bitcoin’s price, CleanSpark chose to sell Bitcoin between the $40,000 and $60,000 range and reallocate the funds into more efficient infrastructure.
Looking ahead, CleanSpark has updated its strategy in preparation for the upcoming Bitcoin halving. The company now plans to hold onto a larger portion of its Bitcoin holdings, believing that the halving event will yield significant rewards and dividends. Furthermore, CleanSpark CEO Zach Bradford hinted at the company’s future plans for mergers and acquisitions (M&A). He sees the post-halving period as an opportune time for potential M&A opportunities, with the possibility of acquiring empty facilities from struggling peers and deploying state-of-the-art miners for quick returns.
CleanSpark’s ambitious expansion plans and successful execution highlight its commitment to capitalizing on the Bitcoin mining industry’s potential. The company’s strategic investments, collaborative approach with local communities, and adaptability to market conditions position it for continued growth and success in the future.
Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises