CleanSpark surged by 8.82 percent on Tuesday to close at $13.45 apiece, fueled by a massive $11.6 billion infrastructure leasing agreement that marks its aggressive pivot into AI data center hosting.
In an updated report, CleanSpark Inc. (NASDAQ:CLSK) said that it entered into a 20-year infrastructure leasing deal with an unnamed high-investment-grade tenant for an initial contract revenue of $6.6 billion.
For illustration purposes only. Photo by Brett Sayles on Pexels
The agreement also covers the option to extend the lease for two five-year periods, which, if exercised, could boost its total leasing revenues to $11.6 billion.
The deal marks one of the listed firm’s most strategic milestones to date, shifting investor focus beyond its core Bitcoin mining operations toward the rapidly expanding AI data center market, where demand for power and computing capacity continues to outpace supply.
AI Pivot
Under the agreement, the tenant will deploy production-grade infrastructure at CleanSpark Inc.’s (NASDAQ:CLSK) Sandersville campus in Georgia to support a range of computing workloads.
“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 institutional scale,” CleanSpark Inc. (NASDAQ:CLSK) Chairman and CEO Matt Schultz said.
Unlike Bitcoin mining revenues, which fluctuate with cryptocurrency prices and mining economics, long-term infrastructure leases offer more predictable cash flows to developers.
The Sandersville campus was selected for its access to reliable, low-cost power, available capacity for high-density compute, and its ability to support rapid, phased deployment of advanced data center infrastructure.
Since its launch in 2022, CleanSpark Inc. (NASDAQ:CLSK) said that it has been able to establish a sustained presence in the local community, investing in energy infrastructure, site development, and long-term operations that support economic activity throughout the region.
Major Texas Campus Win
Beyond its campus in Georgia, CleanSpark Inc. (NASDAQ:CLSK) also secured an exclusivity arrangement with the same tenant for its 718-acre site in Texas.
Capable of powering 885 MW of planned capacity, the site covers approximately 300 MW of power at the Sealy campus and another 300 MW from the Brazoria campus, where transmission-level infrastructure supports the potential to expand to 600 MW.
Diversification Comes as Bitcoin Output Slows
While the AI infrastructure deal injects massive long-term ARR, CleanSpark Inc.’s (NASDAQ:CLSK) legacy operations face near-term friction. Last week, it said that June Bitcoin production dropped 10 percent year-on-year to 614 tokens, from 685 in the same month last year, highlighting the urgency of diversifying away from pure-play mining.
Average daily production stood at 20.46 versus 22.82 in the comparable period.
“Our bitcoin mining operations continue to perform well in the face of market volatility as we continue to advance our commercialization efforts for Sandersville,” said Schultz.
”We have made meaningful progress towards energization in Texas and look forward to further expanding our HPC campus portfolio in conjunction with monetization.”
Hedge Fund Interest Grows
Based on Insider Monkey’s database, a total of 37 hedge funds held positions in CleanSpark Inc. (NASDAQ:CLSK), versus only 32 in the quarter prior, suggesting continued institutional interest despite volatility across crypto-related equities.
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