US software maker CleanSpark to spend nearly $20m on acquisition of ATL Data Centers

CleanSpark, a software company focused on developing software for energy-management microgrids, has reached an agreement to acquire the American mining firm ATL Data Centers for $19.4 million.

#Acquisition to provide profitable, full-scale demonstration facility to maximize #energyefficiency and integrate #renewables for power intensive applications such as high-density data centers and #bitcoinmining

See more: https://t.co/OA4pCCHWhk pic.twitter.com/S7fRd3o9J0

— CleanSpark Inc (CLSK) (@CleanSpark_Inc) December 10, 2020

The acquisition will mark CleanSpark’s first strategic purchase as part of its growth plan after the company previously secured $40 million in institutional investments. The Nevada-based firm will pay for the acquisition with its own stock.

“This deal should immediately position us as one of the largest publicly traded Bitcoin producers in the country,” said Executive Chairman Matthew Schulz.

In the first phase, CleanSpark signed a contract with a local municipality to increase the mining facility’s capacity from 20 MW to 50 MW. The expansion is slated for completion in April 2021. In addition, the company intends to upgrade the facility with its own software and technologies, and to quadruple the number of ASIC miners.

Currently there are 3,471 devices, delivering a hash rate of 190 PH/s and consuming 9.6 MW. CleanSpark expects that after the equipment is installed and power draw increases, the facility’s capacity will be 0.9-1.4 EH/s, depending on the final configuration of deployed ASIC miners.

The company expects to cut electricity costs to $0.0285 per kWh through its own solutions.

Ultimately, CleanSpark expects that customers will be able to see electricity savings in real time. This will enable them to invest in microgrids with "more reliable information," according to the company.

CleanSpark began analyzing the site from the perspective of energy efficiency and profitability in February 2020.

“Recent significant investments in Bitcoin by such respected companies as Square, PayPal and MicroStrategy again confirm our conclusions about due diligence with respect to this acquisition,” Schulz stressed.

He noted that Square recently announced its intention to invest $10 million as part of an initiative to support renewable-energy-based Bitcoin mining. This aligns with CleanSpark’s policy, Schulz said.

Earlier, New York’s financial regulator urged miners to consider climate change.

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