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

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.

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Mawson Infrastructure Group Signs New Hosting Services Deal with Foundry Digital

Mawson Infrastructure Group, an Australian Bitcoin miner, announced on Friday that it signed a 12 megawatt (MW) hosting co-location deal with the U.S. crypto mining services provider Foundry Digital. - 2022-03-07T111321.961.jpg

The deal will bring Mawson’s crypto mining hosting co-location business to a total of 114 MW, an increase of 5,600% from 2 MW on December 31, 2021. Mawson expects the first mining hardware under the deal to be deployed by the end of Q1, 2022. The miner plans to deploy the mining hardware within its own proprietary Modular Data Centre (MDC) technology at its facilities in the US.

The new signing comes only two days after Mawson signed a 100 MW crypto-mining hosting agreement with Celsius Mining, a subsidiary of crypto lending firm Celsius Networks. Last Tuesday, Mawson signed its largest co-location customer for 100 MW with Celsius Mining.

James Manning, CEO and founder of Mawson, talked about the latest development and said: “in FY2021, we generated (unaudited) $850,000 in revenue from our 2 MW of hosting customers – the agreements we have signed this week take us to 114 MW in our hosting business in total. Our hosting business is expanding rapidly and total contracts signed to date makes us one of the largest Nasdaq listed Bitcoin mining ASIC hosting companies.”

Providing Customers with Access to New Digital Asset Products

Founded in 2019, Mawson Infrastructure Group continues to deliver new and innovative digital asset products to the global market.

Mawson is an Australia-based digital infrastructure provider specializing in cryptocurrency mining and digital asset management, with multiple operations throughout the USA and Australia.

The firm is emerging as a global leader in ESG-focused Bitcoin mining and digital infrastructure. In October last year, Mawson partnered with investment manager Quinbrook Infrastructure Partners in order to open a renewables-powered site in New South Wales, an Australian State. Mawson has identified renewable energy projects it plans to develop as part of its efforts to decarbonize the global society, with a key focus on sustainable Bitcoin mining.

Furthermore, last November, Mawson partnered with Cosmos Asset Management Pty Ltd to provide Australians with new investment opportunities in the growing digital asset ETF (exchange-traded fund) products.

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Mawson Infrastructure Group Buys 17,352 Bitcoin Mining Rigs From Canaan

The Australian bitcoin mining infrastructure provider bought 17,352 Avalon A1166 and A1246 machines from rig maker Canaan.

Mawson Infrastructure Group, a bitcoin mining infrastructure and management provider, has announced it purchased 17,352 ASIC bitcoin mining rigs from hardware maker Canaan. The successful deployment of all machines could increase Mawson’s current hashrate capacity by 1,500 petahashes (PH).

“Coupled with our extensive power infrastructure across the U.S. and Australia, we look forward to having these units online in late 2021 and early 2022,” said James Manning, founder and CEO of Mawson. “We again reiterate our end of CY21 goal of 2000 PH and end of CY22 goal of 5000 PH, and look forward to updating shareholders further on hardware purchases in due course.”

The Sydney-based firm ordered Canaan’s latest generation Avalon A1166 and A1246 machines, totaling 17,352 units. The company’s Australian facility and its flagship site in Georgia, U.S., will receive the first batch of miners in Q4 2021. All machines are expected to be up and mining in 2022, the announcement said.

Canaan is a major bitcoin mining rig maker based in China that produced the world’s first ASIC-powered BTC miner in 2013. The firm has recently been facing hurdles back home, where nationwide crackdowns on bitcoin mining have led it to reinvent its business model.

The rig maker argued against the Chinese crackdown in June, but its pleas fell on deaf ears. Ten days later, Canaan set up its first overseas after-sales center in Kazakhstan to provide local customers with testing and maintenance services. And towards the end of June, the firm announced it was making its first foray into mining bitcoin with its own operations, also in Kazakhstan.

“We are very happy to have contracted another large order with Canaan, who have been fantastic partners to date,” added Manning. “Canaan have delivered consistently and on time, and in an environment where ASIC bitcoin mining hardware supply is once again becoming harder to secure, we are delighted to further cement our partnership.”


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