On September 9, Bitcoin miner CleanSpark announced the purchase of a facility from its contender, Mawson Infrastructure Group, in Georgia. It’s the second site procurement within a month. The organisation will pay up to $33 million for the facility, plus an additional $9.5 million for 6,468 ASIC miners.
Zachary Bradford, CEO of CleanSpark, said, “the site is nothing but impressive.” “We are excited about Georgia and believe that our expansion in Georgia will keep providing value to our communities and shareholders throughout Georgia.”
Mawson is an Australia-based firm and is listed on Nasdaq with different offices in Australia and the United States. As per the latest 8-K filing by the U.S. As per the Securities and Exchange Commission, Nasdaq has been warned to delist the firm for trading below $1.
Mawson’s chief commercial officer, Nick Huges-Jones, states, “according to 8-K filing, the issue will be cured if we continue to trade above $1 for 10 days or we can just do a reverse split to fix, so we are not stressed about that.” Nick further said, “it’s a win-win for both parties” on the transaction with CleanSpark.
James Manning, CEO of Mawson, stated in the press release, ” we are now intending to concentrate on developing the facilities of Texas and Pennsylvania, where there are chances of convincing returns on capital.”
Last month, after purchasing a 36-megawatt mining site for $16.2 million in Georgia from bitcoin miner Waha Technologies, bitcoin miner CleanSpark announced its second procurement in a month.
As Bradford said a month ago, “We are pleased to be on the acquiring side as all summer, the market is preparing for consolidation. “Our emphasis on sustainability and maximising values for our shareholders has set us in a unique situation to make the most of the remarkable opportunities that the present market has created.”
The organization has taken advantage of the declining costs of ASICs, purchasing 6,200 machines between June and August and 10,000 extra this week.
The organization said the miners bought at the Georgia office from Mawson would add 0.558 exahashes each second (EH/s) to present CleanSpark’s hashrate of 3.8 EH/s. 70,000 new generation miners were able to be controlled if the site can grow an extra 150 megawatts, creating more than 7 EH/s,
CleanSpark agreed to give Mawson up to 30 megawatts of capacity for temporary hosting for as long as 180 days while it moved its miners to the Pennsylvania region.
The organisation said the deal was divided into money consideration of $26.5 million, $11 million in shares of CleanSpark ($4.5 million of which is likely to come to certain earn-out responsibilities), $3 million in merchant funding as promissory notes, and $2 million in a dealer financed earn-out payable at least 60 days subsequent to shutting upon specific circumstances being met.