CleanSpark acquiring seven Bitcoin mining facilities in Tennessee

CleanSpark has announced plans to purchase seven Bitcoin mining facilities in Knoxville, Tennessee for $27.5 million.

The acquisition will add over 85 megawatts to existing capacity, and the deals are expected to close by September 25, according to the company’s press release.

The move will increase CleanSpark’s hash rate by 5 exahashes per second, a 22% jump from its current capacity. The company recently surpassed 23 EH/s and aims to reach 37 EH/s by the end of 2024.

I hope this news stuns you in Knoxville. 🧦

We have made definitive agreements to purchase 7 units #Bitcoin Mining facilities and certain associated lands located in the Knoxville, Tennessee area with 85 MW of immediately available capacity are expected to add 5 EH/s to our energy… pic.twitter.com/x5X71YJtkX

—CleanSpark Inc. (@CleanSpark_Inc) September 11, 2024

In August, CleanSpark purchased a Bitcoin mining site in Wyoming despite national security concerns raised earlier in the year. The purchase went ahead even after President Biden issued an emergency order to halt operations at sites near sensitive military facilities due to potential espionage risks.

Analyst thoughts

HC Wainwright analysts are calling CleanSpark’s acquisition of seven Bitcoin (BTC) mining facilities in Tennessee a strong strategic move, highlighting the company’s ability to provide high-quality infrastructure at a favorable valuation.

With this acquisition, CleanSpark can focus on integrating the latest S21 pro miners to maximize its output. The company also plans to use a community-driven approach to expand operations in Tennessee.

Wainwright analysts noted that CleanSpark has secured the lowest per-MW mining deal of any developed in 2024, at a price of approximately $323,500 per megawatt, according to its BTC Miner M&A Deal Tracker.

CEO Zach Bradford emphasized that Tennessee has a more favorable political and energy environment compared to Georgia, where CleanSpark operates its 500 MW facility.

“Tennessee has a similar political and energy environment to Georgia. We have invested nearly $1 billion in capital here and operate nearly 500 MW… Our plan is to apply the same community-focused, profitable strategy to the Volunteer State as we expand our presence in the region and continue to demonstrate how Bitcoin can benefit the local electric grid and the communities where we operate.”

Zach Bradford, CleanSpark CEO

CleanSpark stock is currently trading at $9.30 per share, but analysts see this news as a buying opportunity and reiterated their “Buy” rating on CleanSpark while maintaining their $27 price target.