CleanSpark, the second-largest publicly traded crypto-mining operation in the US, presented its plans to acquire a mining facility near FE Warren Air Force Base in Cheyenne to Wyoming lawmakers.
However, the mining facility has been a controversial project. It was ordered to cease operations by the Biden Administration earlier this year due to its proximity to the military base.
Zachary Bradford, CEO of CleanSpark, provided updates on the company’s latest acquisition. He also briefed lawmakers on the ongoing projects during a meeting of the Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology.
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CleanSpark Acquires Controversial Mining Facility After Shutdown
The crypto-mining facility, which has raised security concerns, was previously owned by MinersOne Partners, a British Virgin Islands partnership with majority ownership by Chinese nationals.
Following the shutdown, the property was put up for sale, and CleanSpark successfully acquired it last week.
“I’m sure some of the questions today will be about the acquisition we did near Warren Air Force Base,” Bradford said. He confirmed the transaction was finalized recently, stating, “We are now the owners of the property.”
The announcement was met with enthusiasm from Wyoming lawmakers. Senator Chris Rothfuss (D-Laramie) congratulated Bradford on the purchase, while Representative Cyrus Western (R-Big Horn) called it “outstanding.”
The state has been actively working to attract blockchain and crypto-related businesses since 2018, passing 13 laws to make Wyoming a hub for such industries.
CleanSpark, with its exclusive US operations and deep Wyoming roots, is precisely the type of company the state aims to attract.
We’ve executed 75 MW of power contracts and completed the acquisition of our first #Bitcoin mining site in Wyoming! With a power capacity of 30 MW, it’s expected to add over 2 EH/s to CleanSpark’s #hashrate before the end of the year. 🦬
The location in Cheyenne is planned to… pic.twitter.com/6yKLTVd9JE
— CleanSpark Inc. (@CleanSpark_Inc) August 1, 2024
In a press release, CleanSpark announced that the new facility would add an additional 45 megawatts (MW) of power capacity in Wyoming. To put this into perspective, the Nuclear Regulatory Commission equates 1 MW to the power consumption of 400 to 900 homes annually.
By comparison, the Boysen Dam produces 15 to 17 MW annually, and the Sweetwater Wind Farm generates around 92 MW.
Furthermore, Bradford talked about establishing operations in areas with abundant or underutilized power resources.
“We want to be in places with abundant power or power that has intermittent needs, where we and the community can benefit from our participation,” he explained.
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New Facility To Create 40 Jobs
The new facility is expected to create nearly 40 jobs, with the potential for more as operations expand and technology is upgraded.
CleanSpark plans to invest between $40 million and $50 million in infrastructure improvements. This will be done over the next three to six months, at the Wyoming property, and another location in Mississippi.
Bradford is optimistic about the project’s impact. In fact, he drew parallels with CleanSpark’s success in Georgia, where the company has helped keep power and job growth within the state.
CleanSpark aims to have the Wyoming facility fully operational by December 2024.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
