CleanSpark aims for 400MW Bitcoin mining with GRIID acquisition

CleanSpark, a Bitcoin (CRYPTO:BTC) mining firm, has announced plans to reach 400 megawatts (MW) of mining capacity following its acquisition of infrastructure company GRIID. 

According to CleanSpark CEO Zach Bradford, the acquisition, approved by shareholders, allows the firm to expand in Tennessee and adds flexibility through the Tennessee Valley Authority’s power grid. 

Bradford described the deal as a strategic move that positions CleanSpark closer to achieving its 400MW target over the next few years. 

Under the $155 million all-stock agreement, GRIID shares were converted into CleanSpark shares, with each GRIID share equal to approximately 0.06959 of a CleanSpark share. 

Bradford noted that CleanSpark is looking forward to integrating GRIID’s team, which has already managed 50MW of mining capacity for the company. 

The acquisition is expected to diversify CleanSpark’s geographic footprint and increase its power supply options. 

U.S. Senator Bill Hagerty welcomed CleanSpark to Tennessee, highlighting the state’s growth as a key hub in the American Bitcoin mining industry. 

The acquisition also builds on CleanSpark’s recent expansion in Georgia, where it acquired additional mining facilities in September, boosting its hashrate by 22%. 

GRIID’s former CEO, Trey Kelly, expressed optimism about the combined company’s future, anticipating substantial growth opportunities. 

Meanwhile, CleanSpark shares saw a 12% drop following the merger, aligning with broader market declines as the cryptocurrency sector faces a downturn. 

Despite recent market fluctuations, CleanSpark reported a 187% increase in hashrate over the past year in its October fiscal report. 

With the integration of GRIID, CleanSpark aims to enhance its operational capacity and establish a stronger presence within the U.S. Bitcoin mining industry.

At the time of reporting, the Bitcoin price was $69,554.88.