CleanSpark spends $9.3M on new Bitcoin mining facilities for 6,000 miners. Is Bitcoin mining still profitable?

The Bitcoin mining company, CleanSpark, has purchased two Bitcoin mining sites in Dalton, Georgia for $9.3 million in order to expand their operations.

These facilities will house over 6,000 Bitcoin mining machines, including the latest Antminer S19 XP and S19j Pro+ units.

CleanSpark had already ordered and paid for these machines earlier this year, and this acquisition is part of their plan to achieve a hash power goal of 16 exahash per second (EH/s) by the end of 2023.

• Bitcoin price crosses $30,000 mark, up over 20%. Future of BTC?
• Bitcoin rally continues.
• Bitcoin ETF now available on Euronext Amsterdam.

“This acquisition ensures that we have more than enough infrastructure to reach our year-end target of 16 EH/s,” said CleanSpark CEO Zach Bradford.

“These two additional sites are testament to our deepening ties with rural communities in Georgia and the regional expertise we are developing there as a large, flexible load. Importantly, our efforts are generating economic growth for the suburban and rural areas where our operations are located,” Bradford added.

The deal is expected to be finalized later this week and will increase CleanSpark’s computing power by roughly 1 EH/s, which is about a 15% increase compared to their current hash rate of 6.7 EH/s.

CleanSpark on mining machine buying spree

CleanSpark’s recent purchase of 12,500 new Bitmain Antminer S19 XP units in June is what prompted this expansion.

These acquisitions are expected to add up to a total of 10.5 EH/s to CleanSpark’s current hash rate.

“This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s and also positions us to be one of the most power-efficient miners on an energy-per-hashrate basis,” said CleanSpark’s Bradford at the time.

However, as the Bitcoin mining industry continues to grow amid challenging conditions in the spot Bitcoin market, questions arise about its profitability.

As of June 22, data from BitInfoCharts shows that the daily profitability of mining Bitcoin has risen slightly from $0.06 per day for 1 THash/s on January 1 to $0.07 per day.

Still, when looking at the longer-term picture, mining profitability is still well below the highs from the 2021 Bitcoin bull market, when it reached more than $0.4 per day for 1 THash/s.