CleanSpark Acquires GRIID, Sets Path for 400 MW Bitcoin Mining Expansion

Bitcoin mining company CleanSpark has officially acquired U.S.-based infrastructure firm GRIID, marking a major step toward its goal of reaching 400 megawatts of mining capacity in the coming years. CleanSpark’s CEO, Zach Bradford, announced the acquisition’s completion on October 31, following shareholder approval.

The $155 million all-stock merger not only provides CleanSpark with big infrastructure but also expands its operational footprint into Tennessee. Bradford highlighted this acquisition as a strategic move that adds “geographic and power supply diversity,” specifically within the Tennessee Valley Authority service area, which provides the company with increased flexibility in managing its mining resources.

Bradford added that CleanSpark is looking forward to integrating GRIID’s team into its operations. The two companies have built a strong working relationship over the past few months, with GRIID previously hosting 50 megawatts of CleanSpark’s mining capacity.

Growing Influence in Tennessee’s Bitcoin Industry

GRIID’s former CEO, Trey Kelly, also expressed optimism about the merger, noting the “tremendous upside” he sees for the combined company as they expand within the growing U.S. Bitcoin mining sector.

The acquisition received notable support from U.S. Senator Bill Hagerty, who welcomed CleanSpark to Tennessee, recognizing the state’s increasing role in the national Bitcoin mining landscape. Tennessee’s supportive regulatory environment and growing infrastructure for blockchain technologies have attracted numerous firms in recent years. CleanSpark’s acquisition of GRIID and its facilities in Tennessee further solidifies the state’s place as a key player in the Bitcoin mining industry.

In fact, CleanSpark recently secured seven mining facilities in Knoxville, Tennessee. This push follows a remarkable year of growth for the company, with CleanSpark reporting a 187% increase in its hashrate over the past 12 months. Its hashrate surged from 9.6 EH/s in September 2023 to an impressive 27.6 EH/s by September 2024, an achievement Bradford attributes to the company’s strategic acquisitions and capacity-building efforts.

CleanSpark Stock Down

Despite the promising long-term outlook, CleanSpark stock dropped 12% in after-hours trading following the merger announcement, closing at $10.70. This decline suggests some initial caution among investors, likely due to concerns about the integration process or market conditions affecting Bitcoin.

However, CleanSpark remains optimistic about the merger’s impact on its future operations. Bradford is confident that the GRIID acquisition will prove to be a game-changer, driving CleanSpark closer to its 400 MW capacity goal.