CleanSpark Spends $9.3 Million on New Bitcoin Mining Facilities to Accommodate 6,000 Miners – Is Bitcoin Mining Still Profitable?

Bitcoin (BTC) mining firm CleanSpark is expanding its operations with the acquisition of two Bitcoin mining sites in Dalton, Georgia, for $9.3 million.

The facilities will accommodate over 6,000 Bitcoin mining machines, including the latest generation Antminer S19 XP and S19j Pro+ units.

“This acquisition ensures that we have more than enough infrastructure to reach our year-end target of 16 EH/s,” CleanSpark CEO Zach Bradford said in a comment.

“These two additional sites are testament to our deepening ties with rural communities in Georgia and the regional expertise we are developing there as a large, flexible load. Importantly, our efforts are generating economic growth for the suburban and rural areas where our operations are located,” he added.

We’re coming to another town in the Peach State! 🍑🍑🍑$CLSK has entered into definitive agreements to acquire two turnkey #bitcoin mining campuses located in Dalton, Georgia, for a cash payment of $9.3 million.

The facilities are expected to add just under 1 exahash per… pic.twitter.com/4I5bmzpI6a

— CleanSpark Inc. (@CleanSpark_Inc) June 21, 2023

The deal, which is expected to be finalized later this week, will boost CleanSpark’s computing power by around 1 EH/s — roughly a 15% increase compared to its existing 6.7 EH/s hash rate.

CleanSpark on mining machine buying spree

This expansion follows CleanSpark’s recent machine purchases from June, when the firm bought 12,500 new Bitmain Antminer S19 XP units.

The acquisitions are expected to contribute to a total of 10.5 EH/s being added to CleanSpark’s current hash rate.

“This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s and also positions us to be one of the most power-efficient miners on an energy-per-hash rate basis,” CleanSpark’s Bradford said at the time.

Hot off the press! More miners have been purchased by $CLSK for lower than the current average market price. Approximately 12,500 Antminer S19 XP units were bought for $40.5 million – or $23 per terahash.

The units have a power-efficiency rating of 21.5 joules per terahash… pic.twitter.com/TKRxhWXlzx

— CleanSpark Inc. (@CleanSpark_Inc) June 1, 2023

However, as the Bitcoin mining industry continues to grow amid challenging conditions in the spot Bitcoin market, questions arise about its profitability.

So far in 2023, the profitability of mining Bitcoin has risen slightly, from $0.06 per day for 1 THash/s on January 1 to $0.07 per day as of June 22, data from BitInfoCharts shows.

Still, when looking at the longer-term picture, mining profitability is still well below the highs from the 2021 Bitcoin bull market, when it reached more than $0.4 per day for 1 THash/s.