Understanding Key Terms in Cryptocurrency Mining

Hashrate

Hashrate is a measure of how quickly a computer network can process and verify transactions, often expressed as the number of calculations it can perform in a second. Think of it like the engine power of a car; the higher the hashrate, the more work the network can do in a given time. For investors, a higher hashrate generally indicates a more secure and robust network, which can influence confidence and the value of related digital assets.

Exahashes per Second (EH/s)

A measure of computing power equal to one quintillion (10^18) cryptographic hashing attempts per second, commonly used to describe the total processing speed of a cryptocurrency network or mining equipment. Think of it as the number of rapid “guesses” a system can make every second to solve a puzzle; higher exahashes per second mean stronger network security, greater competition among miners, and potential impacts on miner profitability, energy use, and the supply dynamics that matter to investors.

Miners

Miners are businesses or operations that obtain value by extracting resources — either by digging metals and minerals from the earth or by running specialized, power-hungry computers to create cryptocurrencies. Think of them like factories: their revenue depends on the price of what they produce and their cost to run (fuel, equipment, labor, power), so investors watch miners closely for changes in commodity or crypto prices, energy costs, and regulatory or environmental risks.

CleanSpark Expands Bitcoin Mining Operations with $27.5 Million Acquisition in Tennessee

Knoxville, TN – September 11, 2024 – CleanSpark Inc. (Nasdaq: CLSK), known as America’s Bitcoin Miner®, has announced a significant expansion of its operations with the acquisition of seven bitcoin mining facilities in the Knoxville area. The deal, valued at $27.5 million, is set to enhance the company’s infrastructure and boost its operational hashrate by over 22%.

The newly acquired facilities, which will add 85 megawatts (MW) of capacity, are expected to increase CleanSpark’s total hashrate to an impressive 5 exahashes per second (EH/s) once the latest generation S21 pro miners are installed. This expansion comes on the heels of the energization of CleanSpark’s Dalton 4 campus, which recently pushed its hashrate beyond 23 EH/s.

Zach Bradford, CEO of CleanSpark, expressed enthusiasm about the acquisition, stating, “This transaction represents the continued execution of our growth strategy. Tennessee has a similar political and energy environment to Georgia, where we’ve deployed nearly $1 billion of capital and operate nearly 500 MW. Our plan is to apply the same community-oriented strategy in The Volunteer State.”

The company anticipates closing on each of the seven sites by September 25, 2024, with the new miners already on-site and ready for installation. Bradford emphasized the strategic timing of their market purchases, which allowed CleanSpark to secure low prices and quickly fill the newly acquired data center space.

As the cryptocurrency landscape continues to evolve, a higher hashrate is crucial for network security and miner profitability. CleanSpark’s aggressive expansion not only positions the company for increased production but also reflects a growing confidence in the future of Bitcoin mining.

With this acquisition, CleanSpark aims to achieve a total hashrate of 37 EH/s by the end of 2024, further solidifying its status as a leader in the Bitcoin mining sector. The company’s commitment to low-carbon power sources aligns with its mission to support Bitcoin as a vital digital commodity while fostering trust and transparency within the communities it operates.

For more information about CleanSpark and its initiatives, visit www.cleanspark.com.

Media Contacts:

• Investor Relations: Brittany Moore, 702-989-7693, ir@cleanspark.com
• Media Contact: Eleni Stylianou, 702-989-7694, pr@cleanspark.com

This acquisition marks a pivotal moment for CleanSpark as it continues to navigate the complexities of the cryptocurrency market while prioritizing sustainable practices. As the company expands its footprint in Tennessee, it aims to demonstrate the positive impact of Bitcoin mining on local power grids and communities.