Initial batch of 12 EH/s, or 60,000 units,
expected to ship next quarter
Agreement includes strategic call option to
purchase 100,000 S21s at a fixed price of $16 per terahash
Company is positioned to expand into the next
bull market, while continuing to secure ASICs at fixed prices well
into the next cycle
LAS
VEGAS, Jan. 8, 2024 /PRNewswire/ -- CleanSpark
Inc. (Nasdaq: CLSK), America's Bitcoin Miner™, today
announced the purchase of up to 160,000 Bitmain S21 miners, or the
equivalent of 32 exahashes per second (EH/s).
"We are ready to expand into the next bull
market," said Zach Bradford,
CEO.
Under the terms of the agreement, CleanSpark, one of the largest
and most efficient publicly traded bitcoin mining
companies in North America, has
purchased 60,000 units with delivery expected April through
June 2024. The agreement also
includes a strategic call option to purchase an additional 100,000
machines at a fixed price of $16.00
per terahash until the end of the calendar year. If the full call
option is exercised, CleanSpark's hashrate is expected to increase
to approximately 50 EH/s, a 400% increase from its current hashrate
of 10 EH/s, once all machines are deployed.
"This strategic agreement enhances our operational efficiency,
provides massive optionality, and positions us to maximize
opportunities that we expect on the horizon," said CEO Zachary Bradford. "We are ready to expand into
the next bull market without the need to worry about an increase in
machine prices, since the call purchase option acts as a hedge to
this risk."
"For example," Bradford continued, "in the last bull market,
machine prices increased by three to five times, and we expect the
same to occur in future bull markets. This agreement allows us to
manage our capital most efficiently by controlling as many
variables as possible. It also provides us the flexibility to time
our infrastructure growth with macro events, while providing
certainty of cost on the miners."
CleanSpark opted for Bitmain's S21 model over their T21 model or
other manufacturers' units because of the S21's commanding
performance. The S21 is the most efficient bitcoin
mining machine on the market.
"After receiving initial units, and performing real world
testing, we have determined that the S21 is more efficient and
better suited for our operations," Bradford said. "Being
best-in-class is the CleanSpark way and we expect this agreement to
keep us positioned as one of the most energy efficient and highest
uptime miners in the industry. As we continue to expand our
capacity, we are not only confident that we will successfully
navigate the halving, but we also believe that we will unlock new
avenues of growth, further solidifying our position as a top
publicly traded bitcoin miner."
The purchase price for the first 60,000 units is $16.10 per terahash, for a total of $193.2 million, after discounts and coupons. An
additional 100,000 units can be purchased by the company at a fixed
price of $16.00 per terahash.
About CleanSpark
CleanSpark (Nasdaq: CLSK) is America's Bitcoin Miner™.
We own and operate data centers that primarily run on low-carbon
power. Our infrastructure responsibly supports
Bitcoin, the world's most important digital commodity
and an essential tool for financial independence and inclusion. We
cultivate trust and transparency among our employees and the
communities we operate in. Visit our website at
www.cleanspark.com.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In this press release,
forward-looking statements include statements regarding the
Company's agreement to purchase new Bitmain S21 miners, including
the call option thereunder and expectations for the delivery of the
miners, statements regarding a potential future bull market and the
impact on pricing of miners and other statements regarding the
Company's expectations, beliefs, plans, intentions, and strategies.
In some cases, you can identify forward-looking statements by terms
such as "may," "will," "should," "expects," "plans," "anticipates,"
"could," "intends," "targets," "projects," "contemplates,"
"believes," "estimates," "forecasts," "predicts," "potential" or
"continue" or the negative of these terms or other similar
expressions. The forward-looking statements are subject to a
variety of known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to: the
timing, performance, and costs of purchasing and deploying the S21
miners; the Company realizing the hash rate and efficiency
discussed in this press release; the risk that the electrical power
available to our facilities does not increase as expected; the
success of its digital currency mining activities; the volatile and
unpredictable cycles in the emerging and evolving industries in
which we operate; increasing difficulty rates for
bitcoin mining; bitcoin halving; new or
additional governmental regulation; the anticipated delivery dates
of new miners; the ability to successfully deploy new miners; the
dependency on utility rate structures and government incentive
programs; dependency on third-party power providers for expansion
efforts; the expectations of future revenue growth may not be
realized; and other risks described in the Company's prior press
releases and in its filings with the Securities and Exchange
Commission (SEC), including under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 2023, and any
subsequent filings with the SEC. Forward-looking statements
contained herein are made only as to the date of this press
release, and we assume no obligation to update or revise any
forward-looking statements as a result of any new information,
changed circumstances or future events or otherwise, except as
required by applicable law.
Investor Relations Contact
Brittany Moore
702-989-7693
ir@cleanspark.com
Media Contact
Eleni
Stylianou
702-989-7692
pr@cleanspark.com
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SOURCE CleanSpark, Inc.