CleanSpark Aims to Be Among Top Bitcoin Miners With Up to 500MW Expansion

The deal with Houston-based Lancium will give CleanSpark a mining hashrate of 10.4 EH/s by spring 2023.

AccessTimeIconMar 31, 2022 at 1:00 p.m. UTC
Updated May 11, 2023 at 4:04 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin miner CleanSpark (CLSK) announced a deal with energy technology company Lancium to secure an initial 200 megawatts (MW) at Lancium’s renewable-powered West Texas datacenters, with an option for an additional 300MW in the future.

CORRECTION (March 31, 15:35 UTC): Updated to properly reflect expected hashrate as of spring 2023.

  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
    01:17
    How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
  • Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
    07:43
    Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
  • Bitcoin Could Rally to $63K by March 2024: Matrixport
    01:11
    Bitcoin Could Rally to $63K by March 2024: Matrixport
  • CleanSpark expects about 50MW of the purchased capacity to be operational by the end of this year, with the remaining 150MW to be fully online during spring 2023, the company said in a statement. At full deployment of the 200MW power capacity, the miner’s hashrate is expected to be 10.4 exahash per second (EH/s), or more than double previous guidance for year-end 2022. At full deployment of the additional 300MW power capacity (no timeline given), CleanSpark's hashrate will be 16 EH/s.

    In comparison, Core Scientific (CORZ), the largest publicly traded bitcoin miner by hashrate, expects its year-end mining capacity to reach 40 EH/s-42 EH/s. Meanwhile, Marathon Digital (MARA) sees its hashrate at approximately 23.3 EH/s by early 2023, and Riot Blockchain (RIOT) anticipates hitting 12.8 EH/s by the end of 2022.

    CleanSpark’s stock has been a sizable outperformer in 2022, gaining 30% versus declines of 22% for Core Scientific, 10% for Marathon and 1% for Riot.

    “We continue to build more capacity at our own bitcoin mining facilities while we partner with colocation service providers,” said CleanSpark’s CEO Zach Bradford in the statement. “This hybrid approach helps us ensure that we always have rackspace ready to deploy new machines when they are delivered to us by the manufacturers,” he added.

    Lancium and its “Clean Campuses” made for an “ideal” partner for CleanSpark, continued Bradford, whose company has a goal to use 100% renewable energy. “Lancium’s facilities are best-in-class, scalable and, importantly, draw their power from renewable-rich West Texas.”

    CleanSpark currently has three operating locations that use more than 95% sustainable power sources, including solar, wind, hydro and nuclear, according to a recent presentation.

    Houston-based Lancium last November raised $150 million in financing led by clean energy provider Hanwha Solutions. The company’s Clean Campus data centers will host bitcoin mining, high throughput computing and other energy intensive applications, while providing power management services.

    Lancium's proprietary “Smart Response” software allows these campuses to function as large power stations in reverse, absorbing renewable energy while providing grid ancillary services and helping manage the power flow more efficientlyhttps://lancium.com/press/flexible-data-center-whitepaper/.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.