A Huge Lease That Changes Everything for CleanSpark
On Tuesday, CleanSpark (CLSK) announced it had signed a 20-year infrastructure lease with an unnamed "high-investment-grade, leading global technology company" at its Sandersville, Georgia campus. The identity of the tenant has not been disclosed. Revenue from the initial two-decade term is projected at $6.6 billion. The lease includes options for two further five-year extensions, which could bring the total value to $11.6 billion if fully exercised.
Beginning in the fourth quarter of 2027, CleanSpark will supply 175 MW of computing capacity. Additionally, the tenant has signed a letter of intent for an exclusive lease on CleanSpark's full Texas portfolio, comprising up to 885 MW of both secured and planned capacity.
In a press release, CEO Matt Schultz stated: "This lease is a transformational moment for CleanSpark as we complete our evolution into a diversified digital infrastructure platform and begin monetizing our power portfolio at an institutional scale."
This shift into infrastructure hosting comes as tech giants race to lock down energy capacity for AI data centers and cloud computing. CleanSpark's 175 MW in Georgia and potential 885 MW in Texas position it as a significant provider of compute power for the growing AI market.
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This lease marks a strategic pivot for CleanSpark, which until now derived all its revenue from bitcoin mining. The company's Sandersville campus and Texas portfolio provide substantial power capacity, positioning it to tap into the growing demand for AI and high-performance computing hardware. The deal not only offers a long-term revenue stream but also reduces CleanSpark's exposure to Bitcoin's price volatility.
At the close of the first quarter, CleanSpark disclosed that it still derived 100% of its revenue from bitcoin mining. The AI and high-performance computing hosting segment had not contributed any revenue yet. This lease might generate the company's first revenue from AI or high-performance computing services.
By leveraging its substantial power capacity and infrastructure, the company is positioning itself to meet the surging demand for AI and cloud computing services.
CleanSpark's shares pared their initial gains to approximately 9%. The stock initially surged toward its 50-day moving average but later fell back beneath the 200-day line. Year to date, CleanSpark shares have climbed 33%.
Bitcoin Gets a Lift from a Cooler Inflation Report
By Tuesday afternoon, Bitcoin had risen to around $64,400, a gain of roughly 3.5% in the last day. The trigger was the June consumer price index (CPI) report, which came in cooler than expected. The cooler-than-expected June CPI report could prevent the Federal Reserve from raising interest rates at its next meeting.
Nevertheless, Bitcoin has fallen about 26% year-to-date and remains far below its all-time high of $126,200 set last October.
The rally lifted other crypto-related stocks. Bullish (BLSH) surged nearly 9%, while Coinbase (COIN) advanced almost 3%. Strategy (MSTR) gained 6%. Keel Infrastructure (KEEL), which changed its name from Bitfarms, added 3%.
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