CleanSpark’s stock surges as it pivots from bitcoin mining to AI infrastructure services
CleanSpark’s (CLSK) stock soared as much as 13% in Monday morning trading after the company announced that it was expanding from a pure-play bitcoin miner into AI data center infrastructure services.
As part of what it calls its “business evolution,” the company has hired Jeffrey Thomas as senior vice president of AI Data Centers. Thomas was previously president of AI Data Centres at Humain, a Saudi Arabian-based AI firm.
CleanSpark noted in a press release that Thomas has worked on 19 ventures across the globe throughout his career that have created $12 billion in shareholder value. In his role at Humain, Thomas helped lead the Kingdom of Saudi Arabia's multi-billion AI data center program.
He will begin hiring a team to start building out CleanSpark’s AI infrastructure strategy.
The Nevada-based company said that its move into the AI data center space will follow the "vertically integrated ‘infrastructure-first’ model” that it has used with its bitcoin mining business in order “to unlock value across its land and power portfolio.”
CleanSpark said that its expansion into AI data center infrastructure services will help it diversify its revenue stream and strengthen its long-term cash flow.
"Jeffrey's decades of experience building and scaling digital infrastructure platforms make him an exceptional addition to our leadership team," CleanSpark chairman and CEO Matt Schultz said in a statement.
"His track record of creating billions in shareholder value and forging partnerships with the world's leading technology companies will be instrumental as we expand our operations and deliver diversified growth for our shareholders."
Schultz was named CEO in August immediately after former chief executive and co-founder Zachary Bradford resigned.
Although no reason was given for Bradford’s departure, Schultz said in a statement at the time that as the company “continued to grow, the board believes that now is the right time for a change in leadership as we look to fully capture opportunities available to CleanSpark,”
That indicates that the board is possibly seeking a new strategic direction.
Thomas said in a statement that CleanSpark had reached “a pivotal moment in its journey” and there was now an opportunity to position the company at “the center of the AI and intelligent computing revolution.”
"The company has already established itself as a leader in large-scale bitcoin mining, and I look forward to building on this foundation by expanding into next-generation digital infrastructure,” Thomas said.
A number of bitcoin miners have been pivoting to data center infrastructure and high-performance computing services to capitalize on the AI boom and also because bitcoin mining has become increasingly difficult to turn into a profitable business.
For smaller U.S.-based operations, it now costs roughly $137,000 to mine a single BTC according to some estimates, which is more than $25K higher than the current price of bitcoin.
CleanSpark’s stock closed up 4.5% on Monday and has gained 121.5% for the year.