CleanSpark, a U.S.-based Bitcoin mining firm, has finalized its acquisition of infrastructure company GRIID, bringing it closer to reaching its 400-megawatt (MW) mining capacity target over the next few years. CleanSpark CEO Zach Bradford described the acquisition as a strategic step to bolster the company’s operations in Tennessee, where GRIID’s existing infrastructure provides CleanSpark with additional resources and flexibility in the Tennessee Valley Authority region.
Tennessee Expansion and Geographic Diversity
With this acquisition, CleanSpark gains over 50 MW of mining capacity that GRIID previously hosted for the company, adding significant geographic and power supply diversity. Bradford emphasized the operational advantages that come with expanding within the Tennessee Valley, which strengthens CleanSpark’s ability to scale. He added that the integration of GRIID’s team, with whom CleanSpark has been collaborating over the last three months, will support the company’s growth.
The acquisition, initially announced in June, was finalized under a $155 million all-stock merger agreement. Each share of GRIID stock was converted to approximately 0.06959 shares of CleanSpark stock. GRIID’s former CEO, Trey Kelly, expressed optimism about the merger, noting substantial growth potential for the combined company.
Tennessee’s Growing Role in U.S. Bitcoin Mining
U.S. Senator Bill Hagerty praised CleanSpark’s expansion into Tennessee, highlighting the state as a top destination for the Bitcoin industry. Tennessee has seen rapid development in its crypto-mining infrastructure, positioning it as a key player in the national Bitcoin mining landscape.
In a further effort to strengthen its Tennessee operations, CleanSpark recently agreed to purchase seven mining facilities and the associated land around Knoxville, boosting its hashrate by 22%. The company has already achieved a 187% increase in hashrate over the past 12 months, according to a fiscal report released on October 4.
Market Reactions Amid Broader Crypto Slump
Despite these developments, CleanSpark’s stock fell 12% to $10.70 in after-hours trading on October 31. This decline reflects a broader downturn in the crypto market, which experienced a 6% drop that day, affecting mining stocks across the board.
