CleanSpark Inc, a US Bitcoin mining company, has announced that it has agreed to a $33 million in-principle deal to purchase the fully operational mining facility in Sandersville, Georgia, from Mawson Infrastructure Group Inc. According to projections, CleanSpark’s hashrate will increase by 1.4 EH/s before the end of the year to 2.4 EH/s at the beginning of 2023. This will rise further to 7.0 EH/s by the end of 2023 as a result of the acquisition.
What the deal entails
In addition, Mawson and CleanSpark have reached an agreement for CleanSpark to purchase 6,468 of the company’s most recent generation mining ASICs. The deal will cost CleanSpark about $9.5 million in cash, or $17 per terahash. These machines were already in use at the acquired facility. They will immediately increase processing speed by more than 558 petahashes per second (PH/S). CleanSpark plans to increase its capacity to over 22 EH/s by 2023, and this expansion will help them get there.
At closure, Mawson will receive roughly $26.5 million in cash. The amount includes $9.5 million for the miners, per the terms of the facility and miners’ agreements. In addition, Mawson will receive up to $11 million in CleanSpark shares (at the current market price). Furthermore, $6.5 million of this will be issuable at closing.
There will be $3 million of seller financing in the form of promissory notes. The remaining $4.5 million will be contingent on the achievement of specified earn-out commitments. Also, if certain requirements are completed within 60 days after closing, the seller will pay an additional $2 million in an earn-out. The highest sum to be paid for the facility and miners is capped at $42.5 million.
The agreement also calls for CleanSpark to supply 30 MW of temporary hosting capacity for up to 180 days while Mawson relocates its miners to Pennsylvania. The process will begin in 2023. CleanSpark plans to begin self-mining in the new facility immediately upon its completion. Each company’s board of directors has authorized the deal, and it will close once the usual preconditions are met. The merger between CleanSpark and Mawson is expected to close in early October.