Everyone wants to take a bite of cryptocurrencies. Every day a new big-name announces their digital asset investment.
Just this week, Southeast Asia’s biggest bank, DBS Group Holdings, announced its digital exchange and insurance behemoth MassMutual purchased $100 million in Bitcoin in the long line of mainstream herd jumping on the crypto bandwagon.
CleanSpark is another one that has acquired the US-based Bitcoin mining company ATL data centers for $19.4 million, which “should immediately position us as one of the largest publicly-traded Bitcoin producers in the country,” said Matthew Schultz, Executive Chairman at CleanSpark.
In response to the news, the shares (CLSK) of the company jumped 20%. This strategic acquisition is part of the company’s “larger growth plan” following CleanSpark’s recent $40 million institutional investment.
MicroStrategy was the pioneer in making a big bet on Bitcoin, followed by Jack Dorsey’s Square, which validated the crypto move for CleanSpark. Schultz said,
“The recent, significant investments into Bitcoin by such respected companies as Square, PayPal, and MicroStrategy further validate our due diligence conclusions surrounding this acquisition.”
Mass BTC Production at Lowest Energy Costs
The company is expanding its power from 20MW to 50MW, which is scheduled to be completed in April 2021. It is further working on adding renewable energy generating assets and more than quadrupling the number of ASIC (application-specific integrated circuit) mining units in operation during the expansion. Zachary Bradford, CleanSpark’s CEO, said,
“Our prior experience in the digital currency mining industry provided insight into how proper energy management was crucial to successful and profitable mining operations.”
In 2018, CleanSpark’s energy professionals were tasked to design and engineer a microgrid solution for a ‘stand-alone’ mobile bitcoin mining system. Now, as part of the ATL complex, the company has 23 such mobile mining rigs and the main facility.
The company currently has 3,471 bitcoin mining units (“ASICs”) on-site that are processing approximately 190 PH/s using about 9.6 MW of capacity, which is expected to increase between 0.9-1.4 EH/s following the equipment and energy expansion.
“We expect that this will result in multiple bitcoins being produced daily at some of the lowest energy costs” to below $0.0285 per kw/h, said Bradford in an official announcement.