CleanSpark Announces Ecofriendly Bitcoin Mining Partnership with Coinmint to Increase Capacity and Expand Green Mining Initiatives
|52 Week Range||$3.02-$42.60|
|Avg. Daily Vol. (30 day)||1,531,311|
|Shares Out (MM)||34|
|Market Cap (MM)||$503.10|
|Insiders Own %||5.7%|
|Short Int./% of Float||4,037k / 12.5%|
|Debt to Equity||0.6%|
|Revenue TTM (MM)||$15.8|
|Fiscal Year End||September|
- On Wednesday, July 14, 2021, CleanSpark announced a partnership with Coinmint to collaborate on the mining of zero-carbon bitcoin. WTR also hosted a Fireside Chat with CleanSpark’s CEO, Zach Bradford, covering recent changes in the bitcoin ecosystem and the Coinmint announcement. The event is accessible on-demand HERE.
- Coinmint is an ESG-focused cryptocurrency miner based in Massena, NY. Coinmint operates the world’s largest digital currency data center with 435 MW of transformer capacity.
- As part of the agreement, CleanSpark will deploy 25 MW of its Bitmain S19 Pro miners at Coinmint’s Massena complex. The Massena facility is powered by an energy mix that is 94% carbon-free, mainly comprised of hydroelectric power.
- The partnership will enable CleanSpark to bring additional bitcoin mining capacity on-line and will help the company increase its overall hashrate capacity to 1.2 EH/s upon installation around mid-September.
- The deal also allows CleanSpark to utilize its available miners immediately while its ATL facility undergoes a 30 MW expansion to 50 MW of capacity. CleanSpark expects ~900 S19 miners to begin operating immediately representing 90-100 PH/s instantly being added to its current production capacity of 470 PH/s (>4 bitcoins per day). This will also bring CleanSpark closer to its year-end target of ~2.0 EH/s.
- CleanSpark and Coinmint will also work together on further expansion of their green initiatives with the goal of taking the energy mix from 94% to 100% renewable power, potentially through the addition of large wind and solar arrays around the Massena facility.
- The timing of the transaction is coupled with the mass exodus of Chinese miners which has contributed to lower mining difficulty rates and increased yield which creates a favorable backdrop for bitcoin mining companies.
- Our prior content on CLSK can be accessed HERE.
The market for microgrids is in a long-term secular growth trend, and CleanSpark is well-positioned to capitalize on this as it offers a differentiated, vendor agnostic software and hardware solution that provides significant ROI for customers. Additionally, CleanSpark is focused on scaling its bitcoin mining operation using ~100% low carbon energy and believes this business can contribute $30-40 million in revenue in FY21 and over $325 million in annualized revenue by September 2022.
The company is a relatively small player in an industry dominated by much larger, well-capitalized competitors. CleanSpark has proven its ability to compete effectively but will need to continue to expand its sales network and ensure its software platform evolves with the industry. On the bitcoin side of the equation, an increase in mining difficulty rates would reduce the company’s bitcoin yield and associated revenues, and bitcoin price fluctuations would impact the profitability of the operation.
On Wednesday, July 14, 2021, CleanSpark announced a partnership with Coinmint to collaborate on the mining of zero-carbon bitcoin. WTR also hosted a Fireside Chat with CleanSpark’s CEO, Zach Bradford, covering recent changes in the bitcoin ecosystem and the Coinmint announcement. The event is accessible on-demand HERE.
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