Bitcoin Miner CleanSpark Acquires New Georgia Mining Facility

American-based Bitcoin miner CleanSpark, Inc. (Nasdaq: CLSK) recently disclosed that the company had entered into definitive agreements to purchase a fully operational Bitcoin mining facility in Sandersville, Georgia, for up to $33 million from Mawson Infrastructure Group Inc.

The transaction is anticipated to increase CleanSpark’s hashrate by 1.4 exahashes per second (EH/s) before the end of the year, 2.4 EH/s in the beginning of 2023, and 7.0 EH/s by the end of 2023. CleanSpark aims to reach its goal of more than 22 EH/s by the end next year.

Mawson has also agreed to sell 6,468 of its latest generation ASIC machines to CleanSpark for around $9.5 million in cash, or $17 per terahash. These machines are currently in use at the purchased facility and will add more than 558 petahashes per second (PH/s) of computing power upon closing.

According to the terms of the agreements for the facility and miners, Mawson will receive consideration of around $26.5 million in cash (including the $9.5 million for the miners) at closing.

Mawson will also receive up to $11 million in CleanSpark stock (based on the current trading price), of which $6.5 million is issuable at closing and the remaining $4.5 million is subject to fulfilling certain earn-out commitments. $3 million in seller financing in the form of promissory notes is included along with the facility and miners to be purchased for a total of $42.5 million.

CleanSpark’s CEO Zachary Bradford was very pleased with Mawson’s Sandersville site and explained:

The site is nothing but impressive—well-run by over 20 dedicated professionals who have taken significant pride in the design, development, and maintenance of the site. 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.

Currently, 24,108 of the latest generation miners may be supported by the turnkey infrastructure. By the end of 2023, the facility is expected to expand up to 150 MW and be able to handle 70,000 miners with a production capacity of more than 7.0 EH/s.

As part of the agreed upon terms, CleanSpark will offer up to 30 MW of temporary hosting capacity for up to 180 days when Mawson relocates its miners to their Pennsylvania site. Transferring the miners is planned to begin in early 2023 and once completed, CleanSpark will begin self-mining.

CEO and founder of Mawson James Manning described his appreciation for the City of Sandersville and added that the company will now be focusing its efforts on expanding its Pennsylvania and Texas facilities.

The respective boards of directors from both companies have approved the agreement, which is still subject to customary closing requirements. Mawson and CleanSpark anticipate concluding the deal in early October.

CleanSpark’s executive chairman Matthew Schultz stated that the company will continue expanding their operations in Georgia due to the state’s “strong business ethic, competitive power rates, and an abundance of carbon-free energy, specifically nuclear.”

CleanSpark has invested over $275 million in communities throughout Georgia. The company’s varied list of investments include: property and energy infrastructure upgrades, 75 highly skilled jobs, scholarships, community sponsorships, along with equipment and hardware investments.