Bitcoin mining firms are now arming themselves for the upcoming BTC halving. One of them is CleanSpark, which is now on an aggressive expansion to gear up for the fallout of the event. This ignited a surge in its stock as of Tuesday’s market close.
CleanSpark’s Bitcoin Mining Facility Acquisitions
The fourth epoch of the Bitcoin halving coming in April is set to reduce BTC mining rewards from the current 6.25 BTC to 3.125 BTC per block. Although the resulting scarcity in the long run will benefit investors, this is expected to trim down the players within the Bitcoin mining sector. The first casualties would be the businesses operating on a smaller scale.
With the fight for survival in the field anticipated to intensify post-halving, large Bitcoin mining firms are now racing to upgrade their hardware to improve their processing capabilities and increase their chances of success in mining their prized blocks.
To prepare itself for the pivotal affair, CleanSpark successfully negotiated a deal to acquire three “turnkey” sites in Mississippi to the tune of $19.8 million. The transaction is expected to be finalized in about 21 days, and it’s projected to immediately pump the company’s Bitcoin mining operations by 2.4 exahashes per second (EH/s).
The company also revealed its target to buy one more plant in Dalton, Georgia, with a downpayment of $3.4 million followed by $3.5 million to launch the project around April. This will add another 0.8 EH/s to its capacity and widen its presence in the area to three sites.
“Our move into Mississippi is all about growing our operations and diversifying our data center portfolio in a measured way,” CleanSpark CEO Zachary Bradford stated in an interview with CNBC. “Our operations in Georgia have given us significant experience in southeastern power markets.”
“Mississippi is in the same electric reliability region, so we see a lot of synergies there,” he added.
The energization of these facilities plus the expansion in Sandersville is estimated to double CleanSpark’s overall hashrate from 10 EH/s to 20 EH/s.The boost in operations is forecasted to add 14% in the miner’s revenue.
CleanSpark’s Stock Soars
CleanSpark has had a tumultuous history as its shares went from an all-time high of $59 back in 2018 down to just above a dollar in 2020. It again climbed to a peak of $38.90 during the bull run of 2021 before diving below the $2 mark during the crypto winter of 2022. It finally got out of the penny stocks category in the final months of 2023 as the crypto market rallied.
The recent announcement of the Bitcoin miner triggered a bullish sentiment toward its stock, which resulted in its climb from a $7.64 low to an $8.72 high on Tuesday. As of market close, the price settled at $8.70 with a 12.11% gain within the trading day.