CleanSpark acquires GRIID for $155M, adding 400MW to its grid.
Acquisition includes a $5M loan and $50.9M for immediate obligations.
CleanSpark’s capacity in Tennessee to reach 400MW by 20
One of the prominent Bitcoin mining companies identified as CleanSpark has recently sealed a massive deal in which it acquired GRIID Infrastructure through share for $155 million. This is expected to significantly increase CleanSpark’s wattage and is considered to be a major step forward in the firm’s development plan. The acquisition entails acquiring all of GRIID’s shares as well as its liabilities, and getting a hosting agreement providing CleanSpark with 20MW of power.
Financial Commitments and Growth Projection
In addition to the acquisition, CleanSpark has extended a $5 million working capital loan to GRIID and allocated $50.9 million for immediate obligations. The concept behind this strategy is to gain extra 400MW in the target grid system by the next few years.
Zach Bradford, the CEO said, “After closing we expect to focus in on the best opportunities in the GRIID pipeline. We anticipate that this will allow us to exceed 100 megawatts in Tennessee by the end of this calendar year and eventually grow that to 200 megawatts in 2025 before exceeding 400 megawatts in 2026. At every step of the way we will continue to work together with local communities as we build infrastructure capable of powering as much as one gigawatt of data center operations in Tennessee.”
We’ve announced an agreement to acquire @griid based on an enterprise value of $155 million and expansion plans of over 400 MW in Tennessee. $CLSK expects to add over 400 MW in the state over the next two years.Under the definitive merger agreement, we will purchase all issued… pic.twitter.com/Pd5oXPq4zp
— CleanSpark Inc. (@CleanSpark_Inc) June 27, 2024
Enhanced Presence in Tennessee and Industry-Wide Trends
GRIID presently operates two mining facilities in East Tennessee and a co-located site in New York, with a combined capacity of 68 megawatts predominantly in Tennessee. The acquisition aligns with CleanSpark’s broader strategy amid a trend of data center acquisitions within the Bitcoin mining sector. CleanSpark recently acquired five facilities in Georgia, adding 60 megawatts to its operations, underscoring its commitment to expansion.
This purchase highlights CleanSpark’s dedication to improving its power infrastructure and operational efficiency in the competitive Bitcoin mining industry. CleanSpark is committed to developing strong partnerships with local communities to support sustainable data center operations as it continues to expand. The recent acquisition of GRIID Infrastructure has increased CleanSpark’s power capacity.
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