CleanSpark Shares Surge 11.27% After Tennessee Mining Facility Approval

CleanSpark, a prominent Bitcoin mining company, has received approval to construct a new mining facility in Mountain City, Tennessee. The Mountain City Board of Mayor and Aldermen voted 3-1 to rezone a 50-acre site from B3 to B4 zoning, allowing for higher-capacity infrastructure and energy-intensive operations. The company plans to build a 30-megawatt Bitcoin mining facility on the site.

Mayor Jerry Jordan expressed cautious optimism about the project, acknowledging potential economic benefits and job creation while emphasizing the need for vigilance against unforeseen drawbacks. The authorities view the project as a potential turning point, drawing parallels to the economic revival experienced in Rockdale, Texas, after Bitcoin miners moved in following the closure of its largest employer in 2008.

However, the approval has sparked controversy among local residents. Concerns about noise and environmental impact have led to opposition, with some residents fearing that the facility will negatively affect their quality of life and property values. A petition opposing the facility has garnered 1,575 signatures from locals, highlighting the community's concerns about the potential disruption to the serene environment they treasure.

Following the announcement of this development, CleanSpark’s shares rose 11.27% to $12.33, marking the highest level the stock has seen this year. This increase reflects investor confidence in the company's expansion plans and recent successes. Last month, CleanSpark reported that its hashrate increased to 50 EH/s and recorded improved fleet efficiency. The company's Digital Asset Management division is also growing, managing over 12,500 self-mined Bitcoins.

Zach Bradford, CleanSpark’s CEO and President, attributed the company's growth to its strategy of building and operating its own infrastructure, which has provided the control, resilience, and scalability needed to lead in the industry. This expansion in Tennessee is part of CleanSpark's broader strategy to capitalize on its recent successes and continue to grow its mining operations.