Tag: Cleanspark

CleanSpark Buys 45,000 Bitmain Antminer S19 XPs for $144.9 Million

by Blockchain News

CleanSpark, a crypto miner, has announced the purchase of 45,000 Bitmain Antminer S19 XPs for $144.9 million, which will nearly double its current computing power. This is the latest in a series of acquisitions of distressed assets by the miner, which started in the summer of 2022. The acquisition announcement comes as bitcoin crossed $30,000 for the first time in nearly a year, which could reinvigorate the bitcoin mining space.

The 45,000 Antminers will add over 6.3 exahash/second (EH/s) of computing power to CleanSpark’s fleet of 6.7 EH/s, once delivered and installed. The first batch of 25,000 rigs will be ready for delivery in August from Bitmain, and the rest are scheduled for September. They will be installed at a site in Sandersville, Georgia, which CleanSpark acquired from Mawson Infrastructure (MIGI) in September.

CleanSpark aims to have 16 EH/s of computing power by the end of the year. It lowered its 2023 guidance in December 2022 from 22.4 EH/s, citing delays in construction by one of its partners, Lancium. Another 2.44 EH/s of machines that it acquired at a discount in February are expected to be online at a Washington state facility later in Q2.

“As bitcoin’s halving draws closer, our focus on operational efficiency, our technical expertise, and our treasury management strategy, will all play a crucial role in solidifying CleanSpark’s position among the top bitcoin mining companies in America,” said Zach Bradford, CEO of CleanSpark.

CleanSpark’s purchase of the Bitmain Antminer S19 XPs represents a significant investment in bitcoin mining infrastructure. The Antminers are known for their high hashrate and energy efficiency, making them popular among miners looking to increase their computing power while minimizing energy costs.

CleanSpark’s strategy of acquiring distressed assets has allowed the company to quickly expand its mining operations and increase its computing power. The company’s acquisition of the Sandersville site in Georgia, where the new Antminers will be installed, demonstrates its commitment to expanding its mining operations in the United States.

Bitcoin’s recent price increase could provide a significant boost to CleanSpark’s mining operations. As the price of bitcoin increases, so too does the reward for mining it. This could lead to increased demand for mining equipment and infrastructure, which would benefit CleanSpark and other mining companies.

CleanSpark’s focus on operational efficiency and technical expertise will be key to its success in the competitive bitcoin mining industry. By minimizing energy costs and maximizing computing power, the company can increase its profitability and solidify its position as one of the top bitcoin mining companies in America.

In conclusion, CleanSpark’s purchase of 45,000 Bitmain Antminer S19 XPs represents a significant investment in bitcoin mining infrastructure. The company’s strategy of acquiring distressed assets has allowed it to quickly expand its mining operations and increase its computing power. 

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Bitcoin Miner CleanSpark Acquires Mawson’s Georgia Mining Facility, Rigs for Up to $42.5M

by Blockchain News

CleanSpark, a Las Vegas-based cryptocurrency mining company, is purchasing a facility in Georgia from its rival crypto miner Mawson Infrastructure Group.

CleanSpark said on Friday that it will pay up to $33 million for the facility, with additional $9.5 million for 6,468 ASIC miners owned by Mawson at the facility.

CleanSpark stated that the purchased Georgia facility will add 0.558 exahashes per second (EH/s) to its current hashrate of 3.8 EH/s. The miner further said the site can expand an extra 150 megawatts, which would enable it to power 70,000 latest generation miners, producing over 7 EH/s.

CleanSpark disclosed that it agreed to provide Mawson with up to 30 megawatts of temporary hosting capacity for up to 180 days, while it (Mawson) transfers its miners to the Pennsylvania location.

Mawson Infrastructure Group has multiple mining operations throughout the USA and Australia. Its Beaver County facility is a 100 MW cryptocurrency mining operation located in Midland, Pennsylvania, US.

CleanSpark said the deal in terms of $26.5 million of cash consideration, 3 million in seller financing in the form of promissory notes, $11 million in CleanSpark stock ($4.5 million of which is subject to reaching certain earn-out commitments), and $2 million in a seller-financed earn-out payable at least 60 days after closing upon certain conditions being met.

Zachary Bradford, CleanSpark CEO, talked about the development: “The site is nothing but impressive. We are enthusiastic about Georgia and believe that our expansion there will continue to build value for our shareholders and the communities we operate in throughout Georgia.”

James Manning, Mawson CEO, also commented: “We now intend to focus our attention on the continued development of our Pennsylvania and Texas facilities where we see the opportunity for compelling returns on capital.”

Miners Trying to Overcome Crypto Crash

This is the second acquisition made by CleanSpark in a month.

The firm has continued taking advantage of opportunities that emerge during the market downturn.

Early last month, CleanSpark spent $25.1 million for a mining facility and Bitcoin mining rigs in Georgia.

The company acquired a 36 megawatt (MW) active facility in Georgia from Bitcoin mining company Waha Technologies for $16.2 million, and 3,400 miners in operation at the site for $8.9 million.

CleanSpark also has taken advantage of the declining prices of ASICs, purchasing 6,200 machines between June and August, and an additional 10,000 Antminer S19j Pro units this week.

The mining industry has been consolidating and is expected to continue doing so amid a bear market that is squeezing margins and rendering miners struggling. Some of the miners struggle to run businesses due to large debt obligations.

Consolidation enables the miners to bring their resources together and build greater capacities and efficiencies.

Image source: Shutterstock

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Bitcoin Miner CleanSparks Buys 10,000 Miners at Discounted Price

by Blockchain News

CleanSpark, an American Nasdaq-listed cryptocurrency mining company, has announced the purchase of new 10,000 Antminer S19j Pro units for $28 million.

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The purchase agreement was made with Cryptech Solutions which will deliver the new miners to CleanSpark’s facilities by late October or early November of this year.

According to CleanSpark, the current downturn in the digital currency ecosystem, and its unique economic and business strides were instrumental in helping it land the new miners at a very discounted price. According to the firm, Bitmain, the tech giant that manufactures the Antiminers placed the items on sale at $119 per TH/s earlier this year. However, with the market downturn, CleanSpark said it landed the units at $28 per TH/s.

 

“During the tail end of the bull market last year, we strategically focused on building infrastructure instead of following the then industry trend of pre-ordering equipment months in advance,” said Zach Bradford, CEO of CleanSpark. “This strategy positioned us to make purchases of landed rigs at significantly lower prices, thus reducing the time between deploying capital and hashing, accelerating our return on investment.”

 

With this coming off as the second acquisition in two months, the company’s Executive Chairman, Matt Schultz said the company landed the extremely discounted deal because it prepared for the tough times well ahead. “We’ve strategically avoided lengthy delays in receiving machines and energizing circuits, quickly adding long-term value to our stakeholders,” he said. 

 

At the moment, CleanSpark said it has as much as 40,000 crypto mining equipment in its fold and boasts of a hashrate of 3.8 EH/s. The company churns out 14.9 bitcoins per day from its operations and revealed it strives to maintain its spot as one of the top mining outfits in the cryptocurrency industry.

 

Other Bitcoin mining firms have not had it as good as CleanSpark as many have had to sell some of their mined Bitcoin assets in other to offset debts and handle the cost of operations.

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CleanSpark Purchases Over 1000 Mining Rigs to Strengthen Productivity

by Blockchain News

Nevada-based bitcoin mining company CleanSpark, Inc has announced that it has acquired 1,061 Whatsminer M30S rigs at a steep discount as it continues to expand its infrastructure.

CleanSpark said additional miners enable their mining capacity to increase by 93 petahashes per second (PH/s). The Bitcoin mining company’s total operating capacity of computing power reached 2.8 exahashes per second (EH/s) as of June 30.

The company said new equipment purchased has been operating to mine Bitcoin at the Coinmint facility in New York, which it shares with Riot Blockchain.

Zach Bradford, president and CEO of CleanSpark, said he believed this is an unprecedented opportunity for the company amid the low price of the Bitcoin market.

“Our tried-and-true hybrid approach of co-locating our machines while expanding our own mining facilities puts us in an excellent position to sustainably grow our bitcoin mining capacity in what is shaping up to be an incredible market for builders .”

According to CleanSpark, a total of 1,863 bitcoins were mined in June, 328 bitcoins were sold for roughly $8.4 million.

In the middle of last month, California-based bitcoin mining firm CleanSpark purchased 1,800 Antminer S19 XP computers to take advantage of the bear market and falling bitcoin mining rig prices.

While the dire situation forced some miners to close one by one, survivors like Core Scientific, Marathon, Riot, Hut 8, and Bitfarms were not without casualties as news of their struggles kept coming. Some of these companies started selling some of the mined bitcoins they normally hold on their balance sheets to cover operating expenses.

Argo also disclosed that it sold 637 BTC at an average price of $24,500 in June in order to pay for operating expenses and a BTC-backed loan from Galaxy Digital.

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CleanSpark Orders Purchases of New Bitcoin Mining Rigs to Survive Bear Market

by Blockchain News

Nevada-based bitcoin mining firm CleanSpark, Inc, announced on Thursday that it has placed a purchase order for 1800 Antminer S19 XP units as it continues expanding its infrastructure.

Once fully deployed, CleanSpark expects the mining machines to add over 252 petahashes per second (PH/s) to the company’s bitcoin mining capacity.

As per the acquired contract, the company said that the Antminer S19 XP machines will begin arriving at CleanSpark’s facilities in August, and shipping will continue taking place through the next six months.

Besides that, CleanSpark disclosed that it has partnered with TMGcore Inc – a major developer of data centre hardware specializing in next-generation liquid immersion cooled technologies – to expand its immersion-cooled infrastructure for sustainable mining.

The new partnership with TMGcore includes 257 units of TMGcore’s proprietary immersion-cooled tanks that are designed to improve the performance of CleanSpark’s mining machines while significantly reducing their failure rates over long-term use.

CleanSpark plans to deploy the units in batches at its College Park, Georgia, and its facilities in other locations as determined. The partnership also provides CleanSpark with 2 megawatts (MW) of colocation capacity at TMGcore’s state-of-the-art immersion-cooled mining facility in Plano, Texas.

A Decline of Mining Profitability

The latest move seems that CleanSpark is taking advantage of the bear market and falling prices for Bitcoin mining rigs by purchasing new efficient miners.

It appears that the bearish market is hitting all sectors of the crypto space, including mining firms which are responsible for validating transactions and maintaining the network integrity of the Bitcoin network.

Currently, many Bitcoin miners are selling off their mined tokens as the reduced price of Bitcoin has slashed their profit margins. This happens coincidentally with wider capital markets that have become less friendly with major indexes officially entering a bear market, having lost 20% or more this year.

While the hard situation has forced some miners to close their businesses one by one, the survivors like Core Scientific, Marathon, Riot, Hut 8 and Bitfarms are not without casualties as news about their struggles has also emerged. Some of these firms started selling some of their mined Bitcoins that they normally hold on their balance sheets in order to pay for operational expenses.

However, the current difficult market condition is an opportunity for survivors to accumulate both Bitcoin and Bitcoin mining rigs. Firms that are prepared and acquire the latest generation equipment with locked-in power rates will benefit from current market conditions.

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Bitcoin Miner CleanSpark To Expand Mining Capacity By 45%

by Bitcoin Magazine

Today, giant bitcoin miner CleanSpark announced its purchase of 4,500 Antminer S19 bitcoin mining machines, which were purchased using some of the company’s BTC reserves. The machines are expected to be delivered starting next month, with future deliveries ongoing through July 2022.

When all the miners are up and running, an increase in the company’s computing power by 450 PH/s is expected, which would be a 45% increase of their current computing power.

“By making a conscious effort to reinvest in additional production, we are taking a market-based approach to our mining operations and maximizing value for our shareholders,” said Zach Bradford, CEO of CleanSpark. “We understand that using our bitcoin to support our operations and expansion is a paradigm shift for the digital currency mining industry in North America. We hope to continue to lead the market with these bold moves.”

CleanSpark, which already hosts over 10,000 miners, is planning on having the space available and ready for each new batch of deliveries so they can plug in the miners right away. Over the next 12 months, the company will have 24,580 new miners delivered.

Earlier this year, CleanSpark announced its acquisition of an 87,000 square foot data center in Norcross, Georgia, to increase its mining operations. The bitcoin mining taking place in this data center is 100% carbon neutral and made possible through Georgia’s Simple Solar program.

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CleanSpark Transitions One Exahash Of Bitcoin Mining Power To Foundry USA Pool

by Bitcoin Magazine

All of CleanSpark’s hashrate is now up and mining on Foundry USA Pool, with plans to double it by the end of the year.

Bitcoin mining company CleanSpark announced today that it had moved all of its one exahash (EH/s) hashrate power to the Foundry USA Pool, a mining pool owned by Foundry Digital, a bitcoin mining financing and advisory firm. Upon joining the pool, CleanSpark said it plans to expand its mining fleet to reach 2 EH/s by the end of 2021.

“Our relationship with Foundry is meaningful for our continued growth and productivity,” said Zach Bradford, CleanSpark’s CEO and President, in a press release sent to Bitcoin Magazine. “We will continue to pool our hashrate with Foundry as more of our machines are deployed in the coming months because we share a commitment to empowering decentralized networks.”

The Foundry USA Pool is geared for institutional miners who seek an integrated suite of services ranging from treasury management and bitcoin custody to derivatives products to BTC collateralized lending and yield earnings. Other miners in the pool include HIVE, Hut 8, Greenidge, Core Scientific, Bitfarms, and Foundry itself.

“We are excited to have publicly traded companies such as CleanSpark join Foundry USA Pool, which is designed to provide its customers with institutional standards of transparency, compliance and services,” said Mike Colyer, Foundry’s CEO, per the release.

Bitcoin mining pools are a coordinated way in which different miners can “pool” their resources together and increase their total hashing power. If the pool manages to successfully mine a block, the coinbase reward is split equally between integrants, according to the number of shares they contribute to the pool. According to the release, the Foundry USA Pool pays its members through the full-pay-per-share (FPPS) payout method without relying on an external party, increasing stability and decreasing the risk of the payouts.

“Mining pools historically have not been as transparent in the way they calculate their miners’ earnings,” said Bernardo Schucman, senior vice president of mining for CleanSpark, per the release. “Foundry USA Pool is an exception, however. Being an American mining pool with transparent and compliant methods, it provides all stakeholders with full disclosure of their earnings.”

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CleanSpark Announces $145 Million In Capital, Human Investments In Georgia

by Bitcoin Magazine

The bitcoin miner is working with public-private initiatives to create jobs and benefit community members in Gwinnett County, Georgia.

Software and services company recently turned bitcoin miner CleanSpark announced on September 16 a series of investments in Norcross, Georgia, the home of its newly acquired 87,000-foot data center, totaling $145 million. Over the next five years, the sum is expected to be invested in Norcross Gwinnett County across different areas, including people, skilled and highly skilled jobs, power expansion, and equipment and hardware investments.

“We believe bitcoin mining can make a positive contribution to the neighborhoods we operate in,” said Zach Bradford, CleanSpark CEO and President, in the announcement. “We are committed to being socially and environmentally responsible partners and are proud to work with Partnership Gwinnett as we grow our relationships with other businesses and governmental organizations in Georgia.”

Partnership Gwinnett is a public-private initiative dedicated to bringing new jobs and capital investments to its county. The firm is facilitating CleanSpark’s investment by putting the miner in contact with the more than one hundred corporations, municipalities, and educational institutions supporting Partnership Gwinnett’s welfare mission.

Gwinnett County is located in the state of Georgia and houses CleanSpark’s most recently acquired data center. The 87,000-foot facility in Norcross is expected to increase the company’s current bitcoin mining capacity by 650 petahashes per second (PH/s) once over 6,000 S19 bitcoin miners are deployed. The Norcross data center purchased for $6.55 million in August is expected to provide 20 megawatts (MW) of power to CleanSpark’s mining operations.

“We are delighted to add another company into the fold that reflects our commitment to sustainability,” said Norcross Mayor Craig L. Newton, per the announcement. “We are also exceptionally honored that such an innovative and forward-looking corporation as CleanSpark intentionally selected Norcross as home to its newest data center.”

With its new data center, CleanSpark is anticipated to create 20 skilled and highly skilled jobs in the region with an average annual wage of $50,000. The $145 million amount the bitcoin miner expects to invest in the Norcross facility and overarching community over the next five years also includes $7.5 million in property, $132 million in equipment and hardware, $4.1 million in people, and $2 million in power expansion. The latter will be made possible through a collaboration with Georgia Power, and improvements are expected to benefit the region’s power customers and community members.

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