Prominent Bitcoin mining firm CleanSpark recently revealed that it is on the verge of acquiring seven new crypto mining facilities in Knoxville, Tennessee. According to the Bitcoin miner, the purchase would cost the company approximately $27.5 million, and the details of the purchase will be completed by September 25.
CleanSpark’s Hashrate Expansion
With a plan to increase its current hashrate by over 22%, CleanSpark is set to expand its operational capabilities significantly. The installation of next-generation S21 Pro miners across its seven facilities—which have a combined capacity of 85 megawatts (MW)—will enable this expansion.
CleanSpark expects its combined operating hashrate to reach five exahashes per second (EH/s) once the miners are installed. These advancements strengthen CleanSpark’s competitive position in this rapidly changing industry while also improving its operational efficiency.
CleanSpark’s Strategic Vision
Zach Bradford, CEO of CleanSpark, claimed that his company has locked in low prices and quickly filled newly acquired data center spaces as a result of its acquisition of these mining servers. Bradford further said that the company’s new centers in Wyoming and Tennessee, along with its recent acquisition of GRIID, valued at $155 million, represent a continued execution of CleanSpark’s broader growth strategy.
Bradford stressed that Tennessee will adopt CleanSpark’s community-focused strategy, which has worked well in Georgia and will benefit nearby communities as well as the local power system.
Stock’s Performance and Industry Standard
Meanwhile, CleanSpark’s (ticker: CLSK) stock has fluctuated despite the positives surrounding the firm lately. The stock is down 18% year to date and was down 4.5% at $9.93 per share at the time of the announcement.
CleanSpark and other industry heavyweights like MARA and Core Scientific are among the top three producers of Bitcoin after investment giant Bernstein gave it an “outperform” rating. In particular, Bernstein’s bullish analysis highlighted CleanSpark’s operational effectiveness, as well as its location as the “sweet spot” for energy efficiency and realized hash rate/uptime.
In August, CleanSpark demonstrated its operational strength by mining 478 Bitcoin, which increased its total operating hashrate by 1.4 EH/s. As of August 31, 2024, the company held 7,558 Bitcoin, underscoring its robust operational capabilities.
Bitcoin Mining Environmental Debate
Nevertheless, the Bitcoin mining industry has drawn criticism for its effects on the environment. Bitcoin’s Proof-of-Work (PoW) protocol and high processing power requirements have raised questions about its carbon footprint.
Various science-backed studies have frequently sounded the alarm regarding the environmental costs of mining cryptocurrencies. However, these concerns have stoked political arguments and fostered anti-crypto sentiment in some quarters.
Wes Geisenberger, Vice President of Sustainability and ESG at stablecoin issuer and decentralized public ledger Hedera, stressed the significance of understanding the environmental impact of the industry. Geisenberger argued that the crypto industry must assess its carbon footprint transparently and comparably like other financial and technological sectors.
By reinforcing how Bitcoin mining can help with sustainable energy solutions, a number of Bitcoin mining companies have attempted to dispel these unfavorable impressions. For example, hydroelectric firms sell excess energy they generate during periods of low demand to power mining operations, enabling effective energy usage.
Similarly, flared gas miners repurpose a petrochemical industry waste product, making it useful for Bitcoin mining.
Bitcoin Mining and Environmental Challenges
Meanwhile, research has demonstrated that Proof-of-Stake (PoS) blockchains have drawbacks despite being frequently praised for their energy efficiency. The widely-held notion that PoS blockchains are intrinsically greener than PoW protocols, such as Bitcoin, was called into question by a recent report from the UCL Centre for Blockchain Technologies.
The paper raises questions about the long-term sustainability of PoS systems since they may be more susceptible to centralization. This centralization is an issue since PoS systems rely on validators who stake tokens rather than computational power to process transactions.
Hence, the whole industry is moving forward with addressing the environmental impact of mining cryptocurrencies. Task forces have been formed to provide answers to complicated carbon accounting questions.
They are to make sure mining operations comply with appropriate voluntary and regulatory disclosure requirements. The Bitcoin mining industry must balance its rapid growth pace with maintaining environmental sustainability, which will ultimately determine its future.
The post Bitcoin Miner CleanSpark Acquires 7 Mining Rigs: What to Know first appeared on CryptocyNews.com.
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