CleanSpark has announced plans to acquire seven Bitcoin mining facilities in Knoxville, Tennessee, for $27.5 million.
The purchase will add over 85 megawatts of available capacity, and the company expects to close the deals by Sept. 25, according to a press release.
This move will increase CleanSpark’s hash rate by 5 exahashes per second, a 22% jump from its current capacity. The company recently surpassed 23 EH/s and aims to reach 37 EH/s by the end of 2024.
In August, CleanSpark acquired a Bitcoin mining site in Wyoming despite national security concerns raised earlier in the year. The acquisition proceeded even after President Biden’s emergency order to halt operations at sites near sensitive military installations due to potential espionage risks.
Analyst thoughts
Analysts from H.C. Wainwright view CleanSpark’s acquisition of the seven Tennessee Bitcoin (BTC) mining facilities as a strong strategic move, highlighting the company’s ability to source high-quality infrastructure at a favorable valuation.
With this acquisition, CleanSpark can focus on integrating the latest S21 pro miners to maximize its output. The company also plans to use a community-oriented approach to expand operations in Tennessee.
With a price of approximately $323,500 per megawatt, CleanSpark has secured the lowest price per developed MW for any mining deal in 2024, according to the firm’s BTC Miner M&A Deal Tracker, Wainwright analysts noted.
CEO Zach Bradford highlighted Tennessee’s favorable political and energy environment compared to Georgia, where CleanSpark operates 500 MW of facilities.
“Tennessee has a similar political and energy environment to Georgia, where we’ve deployed nearly $1B of capital and operate nearly 500 MW… applying the same winning community-oriented strategy to The Volunteer State is our plan as we expand our presence in the region and continue showcasing how Bitcoin can benefit the local power grid and communities where we’re located.”
Zach Bradford, CleanSpark CEO
CleanSpark’s stock is currently trading at $9.30 per share, but analysts see this news as a buying opportunity and reiterated their “Buy” rating on CleanSpark, maintaining a $27 price target.
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