CleanSpark Inc (NASDAQ:CLSK) has announced an agreement to acquire a turnkey bitcoin mining facility in Sandersville, Georgia from Mawson Infrastructure Group Inc (NASDAQ:MIGI, OTC:MIGI) for a total purchase price of up to $33 million.
The sustainable bitcoin mining and energy technology company said the transaction is expected to add 1.4 exahashes per second (EH/s) to CleanSpark’s hashrate before year-end, 2.4 EH/s in early 2023 and 7.0 EH/s by the end of 2023.
“The site is nothing but impressive - well-run by over 20 dedicated professionals who have taken significant pride in the design, development, and maintenance of the site,” CleanSpark CEO Zachary Bradford said in a statement.
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“We are enthusiastic about Georgia and believe that our expansion there will continue to build value for our shareholders and the communities we operate in throughout Georgia,” Bradford added.
CleanSpark also said that it has agreed to purchase from Mawson 6,468 of the latest generation mining ASICs for about $9.5 million in cash, at a cost of $17 per terahash.
It added that the mining machines, already operating at the acquired site, will add over 558 petahashes per second (PH/s) of computing power immediately upon closing.
The company said under the terms of the agreements for the facility and miners, Mawson will receive consideration of about $26.5 million in cash (including the $9.5 million for the miners) at closing, up to $11 million in CleanSpark stock (based upon the current trading price), $6.5 million which is issuable at closing and the remaining $4.5 million of which is subject to reaching certain earn-out commitments, $3 million in seller financing in the form of promissory notes, and an additional $2 million in a seller-financed earn-out, payable at least 60 days post-closing upon certain conditions being met.
The maximum total purchase price for the facility and miners is $42.5 million, according to CleanSpark.
As well, the company said the turn-key infrastructure is currently capable of supporting 24,108 latest-generation miners and there is an ongoing effort to expand the facility by an additional 150 megawatts (MW) by late 2023.
The transaction is expected to close in early October.
CleanSpark, a Nevada corporation, is a sustainable bitcoin mining and energy technology company that is solving modern energy challenges.
Contact Sean at sean@proactiveinvestors.com