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CleanSpark expands mining with new Wyoming data center

EditorNatashya Angelica
Published 01/08/2024, 15:52
CLSK
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LAS VEGAS – CleanSpark Inc. (NASDAQ:CLSK), a sustainable bitcoin mining company, has completed the acquisition of a new Bitcoin mining site in Wyoming and secured 75 megawatts (MW) of power contracts, the company announced today. The new site, with a 30 MW capacity, is projected to contribute over 2 exahashes per second (EH/s) to the firm's total hashrate when it becomes operational.

The Cheyenne facility, set to break ground immediately, is anticipated to be fully functional before the end of 2024. It will be the second immersion-cooled data center in CleanSpark's portfolio, which currently includes twelve data centers in Georgia, three in Mississippi, and co-locations in Tennessee and New York. The company also plans to increase its operational hashrate in Tennessee following the pending acquisition of GRIID Infrastructure.

CleanSpark intends to deploy the latest S21 immersion XPs, described as the most powerful and efficient Bitcoin mining machines available. Efforts to expand the power capacity at the Cheyenne site are underway to boost its operational capabilities further.

Additionally, CleanSpark is in the process of closing on the underlying real estate for a second Wyoming site, which is expected to bring 45 MW of power online, contributing an estimated 3 EH/s to the company's hashrate.

This expansion aligns with CleanSpark's commitment to low-carbon power and responsible infrastructure, which supports Bitcoin as a digital commodity and tool for financial independence and inclusion. The announcement follows recent initiatives in Wyoming that have shown public support for the cryptocurrency industry, including the University of Wyoming's launch of its Bitcoin Research Institute and Senator Lummis's introduction of the BITCOIN Act.

The information in this article is based on a press release statement from CleanSpark Inc.

In other recent news, CleanSpark, a Nevada-based financial services company, has made significant strides in its operations. The company recently appointed BDO USA, P.C. as its new independent registered public accounting firm, replacing MaloneBailey, LLP. This change comes after CleanSpark's annual report identified a material weakness in the company's internal control over financial reporting.

CleanSpark's recent developments also include a record-breaking Q2 revenue for fiscal year 2024, reaching $111.8 million, an impressive 163% increase from the previous year. The company reported a net income of $126.7 million for the recent quarter, a substantial turnaround from the net loss of $18.5 million from the previous year.

Further, the company has shown strong performance in the Bitcoin mining industry. Its June operations update showed a significant growth in mining operations and power acquisition efforts. CleanSpark reported a 13.5% month-over-month increase in its hashrate and mined 445 Bitcoins, up from 417 in May.

Cantor Fitzgerald upgraded CleanSpark's shares price target to $28.00, reflecting confidence in the company's growth trajectory and operational enhancements. The firm also gave CleanSpark an Overweight rating, highlighting the company's efficient mining fleet and strong liquidity position.

Finally, CleanSpark has been active in mergers and acquisitions, with plans to finalize the acquisition of a site in Wyoming. These recent developments reflect CleanSpark's ongoing growth and operational enhancements.

InvestingPro Insights

CleanSpark Inc. (NASDAQ:CLSK) has made significant strides in expanding its bitcoin mining operations, solidifying its position in the industry with the acquisition of a new mining site and substantial power contracts. In light of these developments, it's worth examining some key financial metrics and insights from InvestingPro that could provide a deeper understanding of the company's current standing and future prospects.

InvestingPro data highlights a robust revenue growth for CleanSpark, with the last twelve months as of Q2 2024 indicating a staggering increase of 122.34%. This growth is further emphasized by the quarterly revenue growth for the same period, which soared to 162.77%. Such impressive figures suggest that the company's expansion efforts are translating into tangible financial results.

Moreover, CleanSpark's market capitalization stands at $3.72 billion, reflecting the market's confidence in its value and growth trajectory. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 44.77, which, when adjusted for the last twelve months as of Q2 2024, increases slightly to 56.54. This indicates that investors are willing to pay a higher price for the company's earnings, potentially due to expectations of future growth.

Two InvestingPro Tips that are particularly relevant to CleanSpark's current situation include:

  • The company holds more cash than debt on its balance sheet, which is a strong indicator of financial stability and provides flexibility for further investments and expansion.
  • Analysts anticipate sales growth in the current year, reinforcing the positive trend observed in the company's recent revenue figures and supporting the potential success of its strategic initiatives.

For investors and stakeholders looking to delve deeper into CleanSpark's financial health and future outlook, there are 11 additional InvestingPro Tips available at https://www.investing.com/pro/CLSK. These insights could prove invaluable in making informed decisions about the company's stock and its role within the rapidly evolving bitcoin mining sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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