ATLANTA & SYDNEY–(BUSINESS WIRE)–Mawson Infrastructure Group Inc. (NASDAQ:MIGI) (“Mawson”), a provider of digital infrastructure, today announced that it has closed the previously announced transaction with CleanSpark, Inc. (NASDAQ:CLSK) (“CleanSpark”) has agreed to sell its Sandersville, Georgia facility and up to 6,468 ASICs for a total maximum purchase price of approximately $40 million.1
The Sandersville, Georgia facility was Mawson’s first site built from the ground up and was operating at approximately 80 megawatts at the closing of the sale to CleanSpark. The exit from Georgia allows Mawson to focus on its expansion in Pennsylvania, where the company has two nearby locations. The Company anticipates that the sale to Georgia will be accretive to earnings with a preliminary unaudited gain on the sale of approximately $18 million expected in the fourth quarter of 2022.
“The proceeds from the sale of our Georgia facility ensure that Mawson is now fully funded for expansion in Midland, Pennsylvania, while also allowing us to reduce our overall debt. Our Midland facility benefits from low cost energy secured under our 5 year Power Purchase Agreement (PPA). Our large existing infrastructure capacity ensures that we have significant opportunities to continue to build a sustainable business in this difficult economic climate. We continue to receive robust inbound inquiries and demand for co-location hosting services and anticipate new industry standard hosting customers will contribute additional capital needed to establish or expand new or existing facilities,” said James Manning, CEO by Mawson.
Following the sale of the Georgia facility, Mawson expects a self-mining and hosting co-location of 4.5 Exahash by Q1 2023 and 8.0 Exahash by Q4 2023.
Mawson’s existing revised infrastructure capacity includes:
Side? site |
MW capacity |
E/H capacity |
status |
Midland, PA |
100MW |
3.3 |
Stage 1 – 50MW online
Phase 2 – 50MW construction underway |
Sharon, PA |
120MW
|
4.0 |
Stage 1 – 12MW – Q4 2022
Stage 2 – 80MW mid 2023
Stage 3 – 28 MW by the end of 2023 |
Texas |
120MW |
4.0 |
Electrical infrastructure available on site |
New South Wales, Australia |
20MW |
0.5 |
Stage 1 – 16MW online |
Tasmania, Australia |
10MW3 |
0.25 |
Stage 1 – 10MW Q1 2023 |
TOTAL CAPACITY: |
350MW |
12.05 EH |
|
James Manning, CEO and Founder of Mawson, said, “We are extremely proud of the Sandersville facility that we built from the ground up and the amazing team that has operated the site for Mawson since its inception. We believe that the Modular Data Center (MDC) approach to digital infrastructure gives us a competitive advantage in designing and building large-scale, cost-effective infrastructure for digital assets. The sale of the Sandersville facility to CleanSpark allows Mawson to continue to develop world-class digital infrastructure and we will focus on expanding our existing and future pipeline infrastructure assets while considering partnerships.”
Zach Bradford, CEO of CleanSpark, said, “Mawson has built a world-class facility staffed by an incredible team and we look forward to continuing their work in Sandersville and eventually building this site to its full 230MW potential working towards our year-end forecast of 22.4 EH/s for 2023. We are equally committed to deepening and evolving our relationship with the people of Sandersville as we build sustainable Bitcoin infrastructure.”
About Mawson Infrastructure Group, Inc
Mawson Infrastructure Group (NASDAQ: MIGI) is a digital infrastructure provider with multiple offices in the United States and Australia. Mawson’s vertically integrated model is based on a long-term strategy to drive the global transition to the new digital economy. Mawson combines sustainable energy infrastructure with next-generation mobile data center (MDC) solutions that enable low-cost Bitcoin production and on-demand deployment of infrastructure assets. With a strong focus on shareholder returns and an aligned board and management, Mawson Infrastructure Group is emerging as a global leader in ESG-focused Bitcoin mining and digital infrastructure.
For more information, visit: www.mawsoninc.com
About CleanSpark, Inc.
CleanSpark (NASDAQ: CLSK) is America’s Bitcoin Miner™. Since 2014, we’ve been helping people achieve energy independence for their homes and businesses. In 2020, we began applying this expertise to develop sustainable infrastructure for Bitcoin, an essential tool for financial independence and inclusion. We strive to leave the planet better than we found it by sourcing and investing in low-carbon energy such as wind, solar, nuclear and hydropower. We maintain trust and transparency between our employees, the communities we serve, and the people around the world who depend on Bitcoin. CleanSpark is a Forbes 2022 America’s Best Small Company and ranked 44th on the Financial Times list of America’s 500 Fastest Growing Companies.
For more information, visit: www.cleanspark.com
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
Mawson cautions that statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words relating to future events or circumstances such as “expect,” “intend,” “plan,” “anticipate,” “believe,” and “will,” among others. Because such statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based on Mawson’s current expectations and involve assumptions that may never come to pass or prove to be incorrect. Actual results and timing of events could differ materially from those anticipated in such forward-looking statements due to various risks and uncertainties, including, without limitation, the possibility that Mawson will need and be able to raise additional capital, the development and adoption of digital asset networks and digital assets and their protocols and software, the reduction in incentives to mine digital assets over time, the costs associated with digital asset mining, the volatility of cryptocurrency values and prices, and other or new regulation of digital assets . More detailed information about the risks and uncertainties affecting Mawson is contained under the heading “Risk Factors” in Mawson’s Annual Report on Form 10-K filed with the SEC on March 21, 2022 and in Mawson’s Quarterly Report on Form 10-Q , which was filed with the SEC on August 22, 2022 and in other filings Mawson has filed and will file with the SEC in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Because such statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by such forward-looking statements. Mawson undertakes no obligation to update any such statements to reflect events or circumstances after the date they were made, except as required by law.
1 Assuming maximum earn-outs are achieved, no purchase price adjustments are made and CleanSpark share price as of October 7, 2022 and rounding is used.
2 Assuming all equipment is deployed and 100% online, and all contracted sites are built on time, actual results are likely to differ negatively. Construction delays are common and it is rare for all equipment to be provisioned and 100% online. However, accurate downtime averages are difficult to calculate and may not provide an accurate picture due to differences in the future. Investors should consider all risk factors related to uptime when considering these numbers, which represent a best-case scenario. The above information is provided for general information purposes only and are forward-looking statements, which should not necessarily be taken as an indication of future results. Please review our risk factors in our Annual Report on Form 10-K filed March 21, 2022 under the subheading Risks Associated with Our Business and Management for important risks associated with our self-mining. Exahash capacity assumes installation of current generation ASIC bitcoin mining hardware including but not limited to Bitmain S19J Pro and XP, MicroBT M30/1, Avalon A1246, assuming around 30 megawatts per 1 Exahash .
3 Under the terms of the agreement, Mawson has rights to 10 MW at the Que River site. In addition, Mawson has entered into an agreement to acquire a 33% interest in Tasmania Data Infrastructure Pty Ltd, which is developing a 100% renewable energy bitcoin mining facility at the Que River mine site in Tasmania, Australia, with a total of up to 100% ownership wants up to 35 megawatts of energy infrastructure.