Cryptocurrency

Cryptocurrency-based Cleanspark purchases Georgia-based mining facility for $33 million

Cryptocurrency mining firm CleanSpark has made an agreement with for acquiring Mawson’ Georgia-based Bitcoin mining facility for a sum of $33 million. The deal is expected to increase CleanSpark’s hash rate by 1.4 exahashes per second (EH/s) in the upcoming months and is anticipated to reach 7.0 EH/s by next year’s end, as reported by Cointelegraph.

According to Cointelegraph, the agreement states that 6,468 last-generation mining ASICs will be purchased for $9.5 million or $17 per terahash. “These machines, already operating at the acquired site, will add over 558 petahashes per second (PH/s) of computing power immediately upon closing,” the company stated.

On the basis of information by Cointelegraph, CleanSpark is expected to pay an amount of $42.5 million for the facility and miners, including an additional $11 million in CleanSpark stocks and $4.5 million in the form of earn-out commitments. The Georgia’s site has the reported capability to support 24,108 latest-generation miners as the company plans to expand support to 70,000 miners producing over 7.0 EH/s in 2023. CleanSpark has attempted to consolidate its position in the bear market through high energy costs. Recently, the company entered into a purchase agreement with Cryptech Solutions for 10,000 Bitmain Antminer S19j Pro unit for a total amount of $28 million.

Moreover, Cointelegraph noted that in July, CleanSpark stated the buying of over 1,000 Bitcoin miners from Whatsminer M30S at a discounted price, and also purchased 1,800 Antminer S19 XP rigs in June. While the bull market was in effect, the company emphasised on infrastructure development prior to equipment ordering months in advance. 

“This strategy positioned us to make purchases of landed rigs at lower prices, thus reducing the time between deploying capital and hashing, accelerating our return on investment,” Zach Bradford, CEO, CleanSpark, mentioned.

(With insights from Cointelegraph)

Also Read: US SEC to set up new office for cryptocurrency-based filings

Follow us on TwitterFacebookLinkedIn

Source link

Leave a Comment