LAS VEGAS - CleanSpark Inc. (NASDAQ:CLSK), a prominent American company in the digital currency mining sector, has announced definitive agreements to purchase two bitcoin mining locations in Wyoming. The acquisition, involving a cash transaction of $18.75 million, will provide the company with 75 megawatts (MW) of power and is expected to close within 45 days.
Upon completion, the new facilities are projected to contribute over four exahashes per second (EH/s) to the company's mining capacity. CleanSpark also has plans to potentially expand these sites by an additional 55 MW, which would cumulatively increase its hashrate by more than 7 EH/s.
Zach Bradford, CEO of CleanSpark, expressed enthusiasm for the company's growth and diversification strategy, highlighting the recent expansion into Mississippi and now into Wyoming. The company's strategic acquisitions come as it aims to reach a target hashrate of 50 EH/s.
Currently, CleanSpark owns and operates eight data centers across the American South, with nearly 400 MW under management. Additionally, it co-locates approximately 50 MW of machines at a data center in upstate New York. These expansions are part of CleanSpark's broader efforts to solidify its position as one of the largest owned-and-operated bitcoin mining fleets in North America.
CleanSpark emphasizes its commitment to low-carbon power solutions and responsible infrastructure development that supports the Bitcoin network. The company's operations are designed to foster financial independence and inclusion while maintaining trust and transparency in the communities where they operate.
This expansion is based on a press release statement and is subject to various risks, including the successful closing of the transaction, the attainment of additional power in Wyoming, and the anticipated increase in the company's hashrate. CleanSpark's future results may be influenced by factors such as regulatory changes, the volatility of digital currency mining industries, and other risks detailed in the company's SEC filings.
InvestingPro Insights
As CleanSpark Inc. (NASDAQ:CLSK) continues to expand its bitcoin mining operations, investors are closely monitoring the company's financial metrics and market performance. According to the latest data from InvestingPro, CleanSpark has a market capitalization of approximately $3.74 billion, reflecting the company's significant presence in the digital currency mining sector.
InvestingPro Data reveals that CleanSpark has experienced substantial revenue growth over the last twelve months as of Q1 2024, with a remarkable increase of 75.4%. This growth is further accentuated by the quarterly revenue growth figure, which stands at an impressive 165.24% for Q1 2024. Despite the company's ambitious expansion efforts, it operates with a negative P/E ratio of -26.20, suggesting that it has not been profitable over the past twelve months. Nevertheless, the company's gross profit margin remains strong at 52.39%, indicating efficient operations and cost management.
Two key InvestingPro Tips for CleanSpark are worth noting. Firstly, analysts anticipate sales growth in the current year, which aligns with the company's expansion plans and recent acquisitions. Secondly, CleanSpark's stock generally trades with high price volatility, which is a critical consideration for investors looking for potential opportunities in a dynamic market.
For those interested in a deeper analysis of CleanSpark, InvestingPro offers additional insights and metrics. There are 12 more InvestingPro Tips available for CleanSpark, which can provide investors with a more comprehensive understanding of the company's financial health and market potential. To access these tips and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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