Shares of CleanSpark (CLSK +0.35%) jumped on Tuesday after the data center developer struck a multibillion-dollar deal with a major tech company.
Image source: Getty Images.
A blockbuster deal
CleanSpark signed a 20-year lease for its data center campus in Sandersville, Georgia. The triple-net lease is projected to produce $6.6 billion of contracted revenue, and up to $11.6 billion if two five-year extension options are exercised.
NASDAQ: CLSK
Key Data Points
CleanSpark did not disclose the name of the tenant, but it did say it was a "high-investment grade, leading global technology company."
"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 CEO Matt Schultz said.
The tenant also signed a letter of intent and an exclusivity arrangement for CleanSpark's planned 885 megawatts of power capacity in Texas, indicating that this lucrative relationship could expand in the future.
Shifting from Bitcoin to AI
These agreements validate CleanSpark's strategic shift from Bitcoin mining to high-performance computing infrastructure. Artificial intelligence (AI) data centers can be significantly more profitable and predictable than Bitcoin mining operations, with contracted revenue streams that are not tied to fluctuating digital asset prices.
Investors are clearly in favor of the new strategy, and they're bidding up CleanSpark's shares in kind.
