CleanSpark Inc (NASDAQ:CLSK), a diversified software, services and bitcoin mining company, said it has struck an agreement with new partner Coinmint to potentially deploy nearly 25 megawatts (MW) of its highly efficient Bitmain S19 Pro miners at a location operated by Coinmint.
The Salt Lake City, Nevada-based company said it plans to deploy around 750 PH/s in hashrate capacity at Coinmint's facility in Massena, New York between July and September this year. To support this hashrate, Coinmint has agreed to provide 25 MW of power, provide operations support and commit to 98% uptime.
CleanSpark expects the agreement to “rapidly increase” its overall hashrate across all bitcoin mining locations to 1.2 EH/s upon installation and believes that it will allow it to maximize its bitcoin production, while maintaining all aspects of its environmental, social, and corporate governance (ESG) mining philosophy.
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Coinmint operates the largest private digital currency data center in the world. The power is primarily derived from hydroelectric power, and, including all sources, achieves an energy mix that is 94% carbon-free. Coinmint is focused on all aspects of ESG in addition to operating a site powered primarily by renewable energy and focuses on providing jobs within its community. Additionally, CleanSpark and Coinmint intend to collaborate on further expansion of their green energy initiatives, with a goal of reaching 100% renewable power.
In a statement, Coinmint CFO Michael Maloney said: "Space and power for mining is in high demand, but we choose our partners carefully, we selected CleanSpark as a partner due to their alignment on ESG and sustainable mining practices. Coinmint is uniquely positioned in the market to offer sizable amounts of energy and superior operational excellent to cryptocurrency miners focused on green energy.”
“We also are looking into transforming the remaining 6% of non-renewable energy with onsite renewables and we believe CleanSpark is the right partner to help us achieve this goal. Coinmint looks forward to working with their energy professionals and proprietary energy solutions to expand our renewable energy infrastructure," he added.
Meanwhile, CleanSpark CEO Zach Bradford described the development as a “very exciting opportunity” for the company.
“We are pleased to align ourselves with a company that has a similar ESG approach and a strong history of performance as a mining service provider. We anticipate that this agreement will enable us to expedite the time to reach 1.2 EH/s. All our recent shipments of mining rigs have arrived as agreed under our purchase agreements.
“Over the course of the next three months, we plan to redirect our shipments to the Coinmint facilities to maximize the contracted 25 MW of clean power. Once we have reached full allocated capacity under the Coinmint agreement, we will then direct shipments of the new units to our Atlanta facilities," he said.
Bradford noted that the 30 MW energy expansion of its own facilities is progressing and will be finalized in the coming months to bring its Atlanta facilities to 50 MW of total capacity.
“We intend to deploy miners to utilize the total available capacity in Atlanta with the units scheduled to arrive between September 2021 and January 2022. Upon installation, CleanSpark's total deployed hashrate is expected to exceed to 2.1 EH/s,” the CleanSpark boss added.
“Due to the rapid exodus of Chinese miners, an industry-wide shift has taken place, and we believe that this is the perfect time to align with a partner to secure additional capacity to create flexibility and sustainability in our overall operations. This partnership is expected to provide us additional flexibility over time with a like-minded partner to continue the growth of our mining operations,” he said.
Bradford noted that CleanSpark is excited by the opportunity to support Coinmint in “achieving their goal of 100% carbon-free operations," an objective shared across all its own business units.
Since the acquisition of ATL Data Centers, CleanSpark has exceeded 470 PH/s in hashrate capacity, mined more than 410 bitcoins, and is currently mining an average of more than four bitcoins per day.
CleanSpark is in the business of providing advanced software, controls and technology solutions to solve modern energy challenges. It has a suite of software solutions that provides end-to-end microgrid energy modeling and energy management solutions. The company also owns a fleet of bitcoin miners at its facility outside of Atlanta, Georgia.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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