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CleanSpark reports 32% increase in October bitcoin mining

Published 04/11/2024, 14:06
CLSK
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LAS VEGAS - CleanSpark Inc. (NASDAQ:CLSK), a sustainable bitcoin mining company, has announced a significant increase in its bitcoin mining yield for October, mining 655 bitcoins, which marks a 32% increase from the previous month. The company also completed the strategic acquisition of GRIID Infrastructure Inc., which is expected to expand its operational capacity in Tennessee.

In the update provided for the month ending October 31, 2024, CleanSpark disclosed that its total bitcoin holdings reached 8,701, with 2.78 bitcoins sold in October at an average price of approximately $62,470 each. The company's deployed mining fleet consisted of 196,032 units, achieving an average efficiency of 20.89 joules per terahash (J/Th) and ending the month with an operating hashrate of 31.3 exahashes per second (EH/s).

The acquisition of GRIID Infrastructure Inc., finalized on October 30, 2024, is a significant move for CleanSpark, which plans to grow its operations to over 400 megawatts (MW) in Tennessee. This development follows the company's completion of purchases for two bitcoin mining facilities in the Knoxville area earlier in October, bringing an additional 20 MW online and contributing to CleanSpark's total hashrate.

Further expansion is underway with the construction of two immersion-cooled bitcoin mining data centers in Cheyenne, Wyoming, totaling 75 MW, and two additional mining sites near Clinton, Mississippi, expected to begin operations in early December 2024. These new sites are anticipated to enhance the company's mining capabilities significantly.

CleanSpark emphasized its commitment to operating data centers that primarily utilize low-carbon power sources, aligning with its branding as America's Bitcoin Miner®. This approach is part of the company's broader strategy to support bitcoin infrastructure in an environmentally responsible manner.

The information in this article is based on a press release statement from CleanSpark Inc. and serves to inform stakeholders and the public about the company's recent operational developments and expansion plans. The forward-looking statements included in the press release reflect the company's expectations and are subject to risks and uncertainties that could affect future results.

In other recent news, CleanSpark, Inc. has finalized its acquisition of GRIID Infrastructure Inc., a move expected to boost CleanSpark's bitcoin mining capacity to over 400 megawatts in Tennessee. As a result of the merger, GRIID's common stock has been converted into CleanSpark common stock and a suspension of trading of GRIID's common stock and public warrants on NASDAQ has been requested.

CleanSpark also doubled its authorized common stock from 300 million to 600 million, following approval from its shareholders. This increase could potentially provide CleanSpark with the flexibility for future corporate endeavors.

In an impressive development, CleanSpark announced that it has reached an operational hashrate of 30 exahashes per second, marking a 200% increase since October 2023. The company attributes this growth to organic expansion, strategic acquisitions, and a fleet upgrade that improved efficiency by nearly 20%.

Analysts have responded positively to these recent developments, with Macquarie upgrading CleanSpark's stock to an Outperform rating. Other firms such as H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings. CleanSpark also promoted Brian Carson to the position of Chief Accounting Officer, bolstering its financial management. These are the recent developments for CleanSpark, Inc.

InvestingPro Insights

CleanSpark's recent operational updates and strategic acquisitions are reflected in its financial metrics and market performance. According to InvestingPro data, CleanSpark has demonstrated impressive revenue growth, with a 140.89% increase over the last twelve months as of Q3 2024. This aligns with the company's reported increase in bitcoin mining yield and expansion efforts.

The company's market capitalization stands at $2.67 billion, indicating significant investor interest in its growth strategy. An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which is consistent with CleanSpark's expansion plans in Tennessee and other locations.

Despite the positive revenue trajectory, it's worth noting that CleanSpark has not been profitable over the last twelve months. However, another InvestingPro Tip suggests that analysts predict the company will be profitable this year, potentially reflecting the expected benefits from recent acquisitions and increased mining capacity.

The stock's performance has been volatile, with a strong 132.02% return over the past year, but a 36.07% decline over the last six months. This volatility is typical in the cryptocurrency mining sector and aligns with the company's focus on bitcoin production.

For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for CleanSpark, providing a deeper understanding of the company's financial health and market position.

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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