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CleanSpark
(NASDAQ: CLSK), the second biggest Bitcoin (BTC) producer on Wall Street by market capitalization,
announced today (Thursday) the execution of 75 megawatts (MW) of power
contracts and the acquisition of its first Bitcoin mining site in
Wyoming. This move marks an expansion of the company’s operations into a third US
state.
CleanSpark Expands Bitcoin
Mining Footprint with Wyoming Acquisition
The initial
30 MW facility, located in Cheyenne, is set to be a fully immersion-cooled data
center. CleanSpark expects this site to contribute over 2 exahashes per second
(EH/s) to its overall hashrate once operational. The company plans to break
ground immediately, with operations projected to commence before the end of
2024.
“We
are thrilled to expand in a state so publicly supportive of our industry,” Zach
Bradford, CEO of CleanSpark, stated. “Working together with local, state and
national leaders, CleanSpark plans to grow its footprint beyond Cheyenne,
throughout the beautiful state of Wyoming.”
This is not
the only consolidation in the cryptocurrency mining market recently. As
reported by Finance Magnates a week ago, Riot Platforms (NASDAQ: RIOT), the
third-largest BTC miner by market capitalization on Wall Street, acquired
Kentucky-based Block Mining for $92.5 million.
“America’s
Bitcoin Miner,” as CleanSpark refers to itself, intends to deploy the latest
S21 immersion XP Bitcoin mining machines at the Cheyenne facility, which are
touted as the most powerful and efficient in the current market. Additionally,
CleanSpark is actively working to increase the available power at this site to enhance operational capacity further.
We’ve executed 75 MW of power contracts and completed the acquisition of our first #Bitcoin mining site in Wyoming! With a power capacity of 30 MW, it’s expected to add over 2 EH/s to CleanSpark’s #hashrate before the end of the year. 🦬The location in Cheyenne is planned to… pic.twitter.com/6yKLTVd9JE
— CleanSpark Inc. (@CleanSpark_Inc) August 1, 2024
Second Site on Site
With the
energy contracts now in place, CleanSpark is moving forward with the
acquisition of a second site in Wyoming. This additional location is expected
to bring 45 MW of power online and contribute an extra 3 EH/s to the company’s
hashrate.
This
expansion brings CleanSpark’s owned-and-operated Bitcoin mining portfolio to
three states, encompassing twelve data centers in Georgia, three in
Mississippi, and now one in Wyoming. The company also maintains co-location
operations in Tennessee and New York.
The move
into Wyoming aligns with recent developments in the state, including the
University of Wyoming’s announcement of a Bitcoin Research
Institute and Senator Lummis’s introduction of the BITCOIN
Act, highlighting the state’s growing support for the cryptocurrency
industry.
Bitcoin. Mined in America. ⚡️ https://t.co/CgDgp7Ab38
— Cynthia Lummis 🦬 (@CynthiaMLummis) August 1, 2024
Challenges for Crypto
Miners in 2024
CleanSpark’s
recent move to acquire a new Bitcoin mine has not markedly influenced its stock
performance on NASDAQ. The stock market shows a broader negative pattern
affecting cryptocurrency mining companies in 2024, as investors continue to
divest from their stocks.
Marathon
Digital Holdings, the largest crypto miner by market cap at $5.8 billion, has
seen its shares fall by 16% this year. Another key player, Hut 8, has
experienced a 7% decline. Last week, Finance Magnates disclosed that
Marathon faced a $138 million penalty after a jury found it guilty of contract
violations.
Despite
this trend, Riot Blockchain maintains a significant presence in the market with
a valuation of $3.4 billion, positioning it just below CleanSpark, which boasts
a market cap of nearly $3.8 billion.
Amidst the
prolonged “crypto winter” and following the 2024 halving event,
mining companies are exploring alternative uses for their extensive data center
capabilities. As Bitcoin mining yields diminish, these firms are increasingly
pivoting to support more resource-demanding sectors such as artificial
intelligence and cloud services.
This article was written by Damian Chmiel at www.financemagnates.com.
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