Bitcoin mining firm CleanSpark said it is closer to realizing its plan to build 400 megawatts of capacity in the coming years after acquiring American-based infrastructure company GRIID.

On Oct. 31, CleanSpark CEO Zach Bradford said he was pleased to announce the completion of the firm’s acquisition of GRIID Infrastructure following shareholder approval, which is a “strategic move that allows us to grow our Bitcoin ( BTC ) mining capacity in the state of Tennessee.”

He added that the acquisition will allow CleanSpark to build over 400MW of capacity in the coming years. “Moreover, this adds significant geographic and power supply diversity through expansion in the Tennessee Valley Authority service territory, providing us with additional operational flexibility,” he said. 

Bradford said the company was looking forward to integrating GRIID’s team, adding, “We’ve gotten to know GRIID’s employees well in the past three months as we have prepared for the merger.” GRIID had hosted 50 MW of mining capacity for CleanSpark.

CleanSpark targets 400MW Bitcoin mining capacity after acquiring GRIID image 0

Source: CleanSpark

Under the terms of the $155 million all-stock merger agreement, which was originally announced in June, each share of GRIID common stock was converted into about 0.06959 of a share of CleanSpark common stock.

Commenting on the acquisition, GRIID’s former CEO, Trey Kelly, said that he sees “tremendous upside” for the combined company in the years to come.

US Senator Bill Hagerty welcomed CleanSpark to Tennessee, adding that the state was “a great place to grow a business” as it has rapidly developed into one of the “centers of America’s Bitcoin industry.”

GRIID requested that Nasdaq suspend trading of its common stock prior to the opening of trading on Oct. 31.

Related: CleanSpark acquires 5 mining facilities in Georgia  

In September, CleanSpark agreed to purchase seven mining facilities and the associated land in the Knoxville, Tennessee, area, boosting the firm’s hashrate by 22%. 

The firm boasted a 187% increase in its hashrate over the past 12 months in a fiscal year report released on Oct. 4.

CleanSpark shares slumped 12% on the day, falling to $10.70 in after-hours trading despite the merger. 

However, the decline was in line with a broader 6% crypto market slump that spilled over into mining stocks. 

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