Bitcoin Miner CleanSpark Acquires New Mining Facilities Amid Rising Hashrates

Henderson-based Bitcoin mining firm CleanSpark has purchased seven new mining facilities worth $27 million in East Tennessee.

CleanSpark plans to shut down some facilities and consolidate operations in a new location before the end of September. These moves aim to upgrade its mining capacity to achieve 37 EH/s before 2024 ends.

The announcement comes as Bitcoin mining difficulty rose to a new all-time high amid dwindling BTC prices.

CleanSpark Doubles Up Operational Capacity

In an announcement, Bitcoin miner CleanSpark disclosed that it acquired seven new mining sites in East Tennessee at $27.5 million.

CleanSpark mainly uses renewable energy to power its operations. Notably, East Tennessee is known for its increased use of clean energy, making it an attractive location for CleanSpark.

According to court filings related to the latest purchases, the seven facilities already exist as mining operations. They only changed ownership upon the recent acquisition, meaning CleanSpark is only consolidating and not opening a new hub.

The firm's press release noted that it will close the newly acquired sites before the month ends. CleanSpark will consolidate the operations to a new destination and use S21 pro miners to upgrade its current hashrate by 22% (an additional 5 EH/s).

The company's CEO, Zach Bradford, said they will commence hashing at the new capacity in the coming weeks. With this upgrade, CleanSpark aims to reach a hashrate of 37 EH/s before 2024 ends.

Bradford further revealed that CleanSpark aimed to leverage this challenging period to acquire the mining infrastructure at lower prices. They hope to fill up an already acquired data center space soon.

East Tennessee and Bitcoin Mining

Over the past two years, many Bitcoin miners have migrated to East Tennessee for various reasons. These include the region's cheap land and bitcoin mining-friendly regulations. Also, East Tennessee has built a vast hydroelectric infrastructure that supports large-scale Bitcoin mining.

Through the efforts of the Tennessee Valley Authority (TVA), Tennessee has established a robust hydroelectric power grid over the years. As a result, the region has very few coal-based power plants.

So East Tennessee is an attractive destination for firms like CleanSpark, which touts itself as a low-carbon Bitcoin miner. Bradford states that Tennessee's energy and political environment is similar to Georgia's. CleanSpark has developed almost $1 billion in capital and operates with nearly 500 MW of energy.

This investment could attract more cryptocurrency mining operations in the region.

Mining Difficulty Skyrockets As Bitcoin Price Struggles

Meanwhile, CleanSpark's progress is not without hurdles. As the CEO mentioned, the firm timed its recent purchase to close the deal at the lowest asking price.

That suggests some mining firms might be sunsetting due to increased challenges. Bitcoin price dwindles while mining difficulty has hit an all-time high.

After dipping below $55,000 on September 6 to a month-low of $52,700, Bitcoin is posting recovery strides. It trades around $58,100, over a 2% increase over the past 24 hours.

However, on September 11, Bitcoin mining difficulty hit a new record high of 92.67 trillion, representing a 3.04% 24-hour increase. The rising difficulty indicates increased competition among miners to find the next block, even as Bitcoin volatility skyrockets.

With competition high among miners, energy requirements have also increased, doubling the expectations of firms like CleanSpark. Moreover, Bitcoin's price is over 21% lower than its all-time high of $73,750, suggesting mining is less profitable. This is particularly concerning for miners who rely heavily on Bitcoin's valuation to scale revenue.

Amid the broader market struggle, CleanSpark stock (CLSK) has been steadily declining, down over 40% in the last three months.

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