CleanSpark shares climbed as much as 22% on Tuesday after the Bitcoin miner announced a 20-year lease for a Georgia data center. The agreement supports its move into artificial intelligence infrastructure. It also adds long-term contracted revenue beyond mining alone.
As per a report from Bloomberg, the company entered into a Triple Net Lease agreement with an undisclosed but investment-grade global technology company.
The agreement is related to a 175-megawatt data center at the company’s Sandersville campus. The estimated revenues of CleanSpark from the agreement are $6.6 billion in the first 20 years.
The total revenue could be up to $11.6 billion if the tenant uses two five-year extension options. The customer would install its own computing equipment in Georgia. The phased deliveries of capacity at the data center will commence in Q4 2027.
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How Georgia Deal Boosted CleanSpark Shares
CleanSpark shares hit an intraday peak of $15.10 and then gave back some of the gains. The stock was higher by around 10.6% in the US session. The CoinShares Bitcoin Miners ETF increased by less than 1%.
This deal will help the company in expanding in AI and high-performance computing infrastructure. Several Bitcoin miners are looking for revenue streams from big sites with good power connections. These properties can support data centers that require steady energy access.
CleanSpark continues being one of the biggest publicly traded corporate Bitcoin hodlers. In addition, the company keeps developing its digital assets beyond mining activity.
The lease in Georgia provides CleanSpark with the long-lasting buyer of available electricity and space at the company’s facilities.
Why CleanSpark Faces Rising Mining Pressure
Expansion of operations occurs despite challenging economic conditions for miners after the 2024 Bitcoin halving. Due to reduced block rewards, revenues fell in all mining companies. Tight margins and unstable Bitcoin value increased pressure on miners.
In March, CleanSpark posted its net loss of $378 million in the second quarter of the fiscal year. Around 60% of this sum was connected to the drop of Bitcoin’s price. CleanSpark sold some of its BTC in February to support operations and expansion.
Listed miners have already sold much bigger parts of their reserves to improve liquidity. Public companies sold around 15,000 BTC during the period from October to February. However, the miner managed to remain a net accumulator against other publicly traded competitors of the industry.
The reporting of the fiscal third-quarter results is scheduled for August 6. According to Yahoo Finance, analysts forecast a loss of $0.25 per share compared with the income of $0.79 per share a year earlier in the quarter.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
