Bitcoin Miner CleanSpark Buys Site Mawson As Consolidation Rises

CleanSpark Inc.a publicly traded bitcoin miner, agreed to acquire a mining facility and mining machinery Mawson Infrastructure Group Inc. — a likely sign that more industry consolidation is coming.

The deal comes as revenue from bitcoin mining firms near a two-year low due to growing competition on the networks, low bitcoin prices and soaring energy costs. While some miners are downsizing their mining operations or revamping their facilities to be more efficient, relatively well-capitalized mining companies like Henderson, Nevada-based CleanSpark are expanding by acquiring infrastructure such as data centers and mining machines. reduced price.

Sydney-based Mawson will receive $26.5 million in cash consideration and $11 million in CleanSpark shares, of which $4.5 million is subject to certain earnout commitments, for its Sandersville facility , Georgia. The operational facility has a capacity of 80 megawatts, with plans to increase capacity to 230 megawatts by the end of next year and can currently support around 24,108 latest generation mining rigs. CleanSpark also agreed to purchase 6,468 machines from Mawson for $9.48 million in cash.

Bitcoin miners use powerful computers to pioneer a solution to validate transactions encrypted by the Bitcoin network and earn limited rewards in the form of newly minted tokens. The more competition there is on the network, the less rewards each miner will receive.

CleanSpark went on a shopping spree for large-scale mining rigs and machinery. The company announced the purchase of 10,000 platforms for $28 million from Cryptotechnology Solutions. And last month, he bought an 86-megawatt mining farm in Washington, Georgia for an undisclosed amount.

In late April, CleanSpark completed $35 million in non-dilutive financing from Trinity Capitala provider of subprime debt financing.

While publicly traded miners like Hut 8 Mining Corp. and Marathon Digital Backgrounds have chosen to hoard Bitcoin, CleanSpark sells tokens at a higher price as it focuses more on mining.

“CleanSpark is considering strategic alternatives for our legacy energy business,” zack Bradford, the chief executive of CleanSpark, said in a statement. “Focusing our efforts on our bitcoin mining segment allows the company to capitalize on the huge opportunity that bitcoin presents.”

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