CleanSpark Shifts Focus from Bitcoin Mining to AI Data Centers

LAS VEGAS, Nevada — CleanSpark, a bitcoin mining company, is pivoting towards artificial intelligence (AI) with plans to develop AI data centers alongside its existing crypto-mining operations. This transition was announced during an episode of CNBC Crypto World on October 31, 2023.

The company’s CEO, Matt Schultz, explained that the strategy reflects the growing demand for power-intensive AI technologies. CleanSpark recently secured a 100-megawatt site in Cheyenne, Wyoming, surpassing tech giant Microsoft, which competed for the contract.

“We were able to scale up and deploy a 100-megawatt bitcoin mining facility in about six months, whereas building a proper AI data center could take three to six years,” Schultz said. He emphasized that CleanSpark’s unique position comes from its extensive infrastructure and access to energy.

Founded as an energy company, CleanSpark transitioned to bitcoin mining five years ago and has become one of the largest operations in the field. It currently operates about 1.03 gigawatts of facilities, with another 1.7 gigawatts in development.

The partnership with Submer, a design and construction firm, aims to create AI-focused campuses across North America. “We are positioned to deliver AI capacity at gigawatt scale, faster, cleaner, and more efficiently than traditional approaches,” Schultz stated.

He also noted that bitcoin miners have significant advantages, such as existing land and direct access to electricity, which are crucial for both mining and AI data centers. “Hyperscalers are spending record amounts on new data centers, but face delays connecting to the grid,” Schultz said.

In its latest earnings report, CleanSpark generated $198.6 million in revenue for the third quarter of 2023, a 91% increase compared to the previous year, and holds 12,703 bitcoins in its treasury. Schultz affirmed that the pivot to AI won’t diminish their commitment to cryptocurrency mining. “It’s a terrific part of our business,” he said.

The company’s flexible power model allows its operations to adjust during grid stress, redirecting electricity back into the system if necessary. This ability provides a unique advantage over traditional AI data centers, which require constant power.

Schultz concluded, “Blending a bitcoin mining facility with an AI data center gives you the ‘interrupt’ ability that utilities desperately need.” This flexibility proved vital during Hurricane Helene, when CleanSpark redirected power to sustain local hospitals after a substation was damaged.