Bitcoin Miner CleanSpark To Increase Hashrate With Acquisition Of Mawson’s Georgia Mining Facility
- Bitcoin miner CleanSpark is set to acquire competitor Mawson Infrastructure Group’s (MIGI) mining facility in Sandersville, Georgia for a whopping $42.5 million.
- This acquisition deal with increase the hashrate generated by the firm to 5.2 EH/s by the year-end with the addition of 6,468 latest-generation mining rigs.
It seems that the American Bitcoin mining company CleanSpark has shielded itself from being impacted by the ongoing crypto bear market as it continues its buying spree.
The Bitcoin mining firm has recently decided to purchase its rival Mawson Infrastructure Group’s mining facility in Sandersville, Georgia. Notably, CleanSpark is acquiring 6,468 latest-generation mining rigs from the facility at a price of $42.5 million.
According to the official announcement, Mawson is planning to use the proceeds of the sale to minimize its debt and to expand near-term activities at its Midland and Sharon Bitcoin Mining Facilities in Pennsylvania, with a combined energy capacity of 220 megawatts available for Bitcoin Mining. The CEO and founder of the company James Manning said that Mawson is looking forward to working closely with CleanSpark in the future.
“We now intend to focus our attention on the continued development of our Pennsylvania and Texas facilities, where we see the opportunity for compelling returns on capital. We would like to sincerely thank the City of Sandersville for welcoming us into their community and being high-quality partners over the last several years,”Manning added.
Notably, Mawson now has pipeline sites at its facilities in Australia and its 120 megawatt Texas Bitcoin Mining Facility. The total energy capacity available across all of these locations for bitcoin mining is 360 megawatts, with a maximum operational rate of 12.0 Exahash.
CleanSpark is required to pay Mawson $26.5 million in cash and $11 million in common stock, with $4.5 million of the amount subject to achieving earn-out criteria. A $3 million promissory note and a further $2 million earn-out make up the $5 million in seller financing.
According to CleanSpark CEO Zachary Bradford, the Sandersville site is nothing short of outstanding, well-run by over 20 committed professionals who have taken tremendous pride in the design, development, and upkeep of the facility.
“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,”Bradford continued.
The latest acquisition is expected to boost CleanSpark’s computing capacity by 1.4 exahashes per second (EH/s) before the end of 2022, bringing the company’s hashrate up to 5.2 EH/s from its previous projection of 5.0 EH/s. According to the release, a further 2.4 EH/s will be added in early 2023 and 7.0 EH/s by the end of 2023.
The acquisition will be the most recent in a line of deals signed by CleanSpark over this year’s crypto winter, which has been especially challenging for miners as a result of increasing energy costs, tough capital markets, as well as the plummeting BTC value.
CleanSpark earlier this week spent $28 million on buying 10,000 brand-new Bitmain Antminer S19j Pros.