It has been reported that the deal is anticipated to increase CleanSpark's hash rate by 1.4 exahashes per second (EH/s) in the next few months, and to 7.0 EH/s by the end of next year. As part of the agreement, 6,468 last-generation mining ASICs will be purchased for $9.5 million, or $17 per terahash.
The company explained:
"These machines, already operating at the acquired site, will add over 558 petahashes per second (PH/s) of computing power immediately upon closing."
However, for the facility and miners, CleanSpark will pay up to $42.5 million, including up to $11 million in CleanSpark stocks and $4.5 million in earn-out commitments. The site in Georgia can support 24,108 latest-generation miners and the company plans to expand to support 70,000 miners producing over 7.0 EH/s in 2023.
The report said that CleanSpark has accelerated its consolidation in a bear market with high energy costs. Last Thursday, the company announced a purchase agreement with Cryptech Solutions for 10,000 Bitmain Antminer S19j Pro units for a total price of $28 million.
In July, CleanSpark disclosed the purchase of over 1,000 Bitcoin miners from Whatsminer M30S at a "substantially discounted price." In June, the mining company also bought 1,800 Antminer S19 XP rigs. During the bull market, the company focused on building infrastructure before ordering equipment months in advance.
Thus, Zach Bradford, the CEO of CleanSpark, said:
"This strategy positioned us to make purchases of landed rigs at significantly lower prices, thus reducing the time between deploying capital and hashing, accelerating our return on investment."