CleanSpark, Inc. (NASDAQ:CLSK) has provided a 60-day post-acquisition update on its Bitcoin mining operations and said it expects to further increase its Petahash rate in February 2021, beyond prior projections.
The diversified software and services company pointed out that it has continued to procure and deploy mining equipment as part of its strategic growth initiative, purchasing its equipment mostly through dealer networks rather than directly through the manufacturers to ensure immediate availability.
Orders for new mining equipment continue to be delivered in multiple shipments and are promptly commissioned as they arrive. Prior to the end of February, the company said it expects to have in excess of 315 Ph/s of Bitcoin mining capacity deployed. This will represent a greater than 65% increase in mining capacity since the December 10, 2020 acquisition.
READ: CleanSpark receives a new purchase order from a Houston, Texas-based microgrid developer
CleanSpark said it has focused on increasing energy capacity in conjunction with the expanding mining capacity as it continues to progress toward its goal of mining at the lowest cost of energy for any domestic Bitcoin mining operation.
Energy costs and power capacity, factored with the overall environmental impact of mining operations will become increasingly important as difficulty levels increase, and greenhouse gas emissions are more strictly regulated under the Biden administration. In light of companies like MicroStrategy, PayPal, Square and Tesla making substantial investments into Bitcoin, demand is expected to increase which will certainly invite scrutiny surrounding the single biggest factor in mining operations that support the blockchain--energy.
In a statement, Zach Bradford, CleanSpark's president and chief executive officer commented: "With companies such as Tesla making large strategic investments in Bitcoin, we believe the validation as a currency has only just begun. CleanSpark has been focused on increasing mining capacity but this hasn't changed any of the long-term plans for renewable energy implementation and deployment of our technologies and solutions to further decrease power costs."
He added: "The mining capacity that is expected to be fully online by month-end should rival many of the 'pure play' publicly traded mining companies 'actual' deployed mining capacity. While other companies have focused on pre-ordering machines, we have focused on putting available capacity immediately to work."
Nevada-based CleanSpark is in the business of providing advanced software and controls technology solutions to solve modern energy challenges. It has a suite of software solutions that provide end-to-end microgrid energy modeling, energy market communications, and energy management solutions.
Through its wholly-owned subsidiary ATL Data Centers LLC, CleanSpark owns and operates a data center that provides customers with traditional on-site and cloud-based data center services. It also owns and operates a fleet of Bitcoin miners producing over 200 PH/s in mining capacity, which is expected to increase to over 300 PH/s in mining capacity in early 2021.
CleanSpark plans to apply its energy technologies to these divisions with a goal of mining bitcoins at the lowest energy prices in the United States.
Contact the author at jon.hopkins@proactiveinvestors.com