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CleanSpark (NASDAQ: CLSK), the second biggest Bitcoin (BTC) producer on Wall Street by market capitalization, announced today (Thursday) the execution of 75 megawatts (MW) of power contracts and the acquisition of its first Bitcoin mining site in Wyoming. This move marks an expansion of the company's operations into a third US state.
CleanSpark Expands Bitcoin Mining Footprint with Wyoming Acquisition
The initial 30 MW facility, located in Cheyenne, is set to be a fully immersion-cooled data center. CleanSpark expects this site to contribute over 2 exahashes per second (EH/s) to its overall hashrate once operational. The company plans to break ground immediately, with operations projected to commence before the end of 2024.
"We are thrilled to expand in a state so publicly supportive of our industry,” Zach Bradford, CEO of CleanSpark, stated. “Working together with local, state and national leaders, CleanSpark plans to grow its footprint beyond Cheyenne, throughout the beautiful state of Wyoming."
This is not the only consolidation in the cryptocurrency mining market recently. As reported by Finance Magnates a week ago, Riot Platforms (NASDAQ: RIOT), the third-largest BTC miner by market capitalization on Wall Street, acquired Kentucky-based Block Mining for $92.5 million.
“America’s Bitcoin Miner,” as CleanSpark refers to itself, intends to deploy the latest S21 immersion XP Bitcoin mining machines at the Cheyenne facility, which are touted as the most powerful and efficient in the current market. Additionally, CleanSpark is actively working to increase the available power at this site to enhance operational capacity further.
We’ve executed 75 MW of power contracts and completed the acquisition of our first #Bitcoin mining site in Wyoming! With a power capacity of 30 MW, it’s expected to add over 2 EH/s to CleanSpark's #hashrate before the end of the year. 🦬
— CleanSpark Inc. (@CleanSpark_Inc) August 1, 2024
The location in Cheyenne is planned to… pic.twitter.com/6yKLTVd9JE
Second Site on Site
With the energy contracts now in place, CleanSpark is moving forward with the acquisition of a second site in Wyoming. This additional location is expected to bring 45 MW of power online and contribute an extra 3 EH/s to the company's hashrate.
This expansion brings CleanSpark's owned-and-operated Bitcoin mining portfolio to three states, encompassing twelve data centers in Georgia, three in Mississippi, and now one in Wyoming. The company also maintains co-location operations in Tennessee and New York.
The move into Wyoming aligns with recent developments in the state, including the University of Wyoming's announcement of a Bitcoin Research Institute and Senator Lummis's introduction of the BITCOIN Act, highlighting the state's growing support for the cryptocurrency industry.
Bitcoin. Mined in America. ⚡️ https://t.co/CgDgp7Ab38
— Cynthia Lummis 🦬 (@CynthiaMLummis) August 1, 2024
Challenges for Crypto Miners in 2024
CleanSpark’s recent move to acquire a new Bitcoin mine has not markedly influenced its stock performance on NASDAQ. The stock market shows a broader negative pattern affecting cryptocurrency mining companies in 2024, as investors continue to divest from their stocks.
Marathon Digital Holdings, the largest crypto miner by market cap at $5.8 billion, has seen its shares fall by 16% this year. Another key player, Hut 8, has experienced a 7% decline. Last week, Finance Magnates disclosed that Marathon faced a $138 million penalty after a jury found it guilty of contract violations.
Despite this trend, Riot Blockchain maintains a significant presence in the market with a valuation of $3.4 billion, positioning it just below CleanSpark, which boasts a market cap of nearly $3.8 billion.
Amidst the prolonged "crypto winter" and following the 2024 halving event, mining companies are exploring alternative uses for their extensive data center capabilities. As Bitcoin mining yields diminish, these firms are increasingly pivoting to support more resource-demanding sectors such as artificial intelligence and cloud services.