CleanSpark gains on deal to acquire Mawson's Sandersville site for $33M

Sep. 09, 2022 8:24 AM ETCleanSpark, Inc. (CLSK), MIGIBy: Preeti Singh, SA News Editor2 Comments

Digitized Bitcoin Symbol via Getty Images

CleanSpark (NASDAQ:CLSK) shares popped ~6% pre-market on Friday after the bitcoin miner agreed to acquire Mawson Infrastructure Group's (NASDAQ:MIGI) bitcoin mining facility in Sandersville, Georgia for up to $33M.

The transaction is expected to add 1.4 EH/s to CleanSpark's (CLSK) hashrate before year-end, 2.4 EH/s in early 2023 and 7.0 EH/s by the end of 2023. This capacity supports CleanSpark's target of over 22 EH/s by the end of 2023.

CleanSpark (CLSK) has also agreed to buy from 6,468 of the latest-generation mining ASICs from Mawson (MIGI) for ~$9.5M in cash, at a cost of $17/terahash. These machines, already operating at the acquired site, will add over 558 PH/s of computing power immediately upon closing.

Mawson (MIGI) will receive ~$26.5M in cash at closing; up to $11M in CleanSpark (CLSK) stock, $6.5M which is issuable at closing and the remaining $4.5M of which is subject to reaching certain earn-out commitments; $3M in seller financing in the form of promissory notes; and, an additional $2M in a seller-financed earn-out payable at least 60 days post-closing upon certain conditions being met.

The maximum total purchase price for the facility and miners is $42.5M.

The Sandersville site, which is currently capable of supporting 24,108 miners, is supposed to undergo an expansion to add 150MW by late 2023. Upon completion of the expansion, the site would be able to support 70,000 miners capable of producing over 7.0 EH/s.

As part of the deal, CleanSpark (CLSK) will provide up to 30MW of temporary hosting capacity, for up to 180 days, while Mawson (MIGI) transfers miners to its Pennsylvania operations. This process is slated to begin in early 2023.

MIGI shares have also gained 14% pre-market

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