CleanSpark Inc (NASDAQ:CLSK), the bitcoin mining and energy tech firm, said it has struck a deal with Houston-based Lancium to secure an initial 200 megawatts (MW) at the latter's renewably-powered datacenters in West Texas, with an option to add 300 MW more.
50 MW of the purchased capacity is expected to be operational by the end of this year, while the remaining 150 MW will be fully operational during spring, 2023, said CleanSpark.
After completely using this capacity, CleanSpark will add an estimated 16.0 EH/s (exa hashes) to its current forecasted hashrate of 4.0 EH/s - strengthening its position as one of the top bitcoin miners in North America.
"Lancium's facilities are best-in-class, scalable and, importantly, draw their power from renewable-rich West Texas, which made Lancium an ideal partner for us to co-locate our machines," said Zach Bradford, CEO of CleanSpark in a statement.
READ: CleanSpark reports record 1Q fiscal 2022 financial results
"This move is in keeping with our strategy of focusing on infrastructure first. We continue to build more capacity at our own bitcoin mining facilities while we partner with colocation service providers. This hybrid approach helps us ensure that we always have rackspace ready to deploy new machines when they are delivered to us by the manufacturers. Such speed and optionality is critical as we scale our mining operations from megawatts to gigawatts in the coming years," he added.
As of February 28, 2022, CleanSpark had over 22,000 bitcoin mining machines in operation, with over 20,000 Bitmain S19 series rigs pending delivery and deployment in batches through October 2022.
CleanSpark employs a sustainable business strategy of converting a portion of its BTC holdings to fund operations and expansion, with a goal of limiting shareholder dilution and stably maximizing returns for shareholders.
Lancium's so-called Clean Campuses are designed to provide a low-cost, sustainable solution for large-scale, energy-intensive customers through its propriety Smart Response technology.
Contact the author at giles@proactiveinvestors.com