J.P. Morgan maintained an overweight rating on CleanSpark (NASDAQ: CLSK) on Wednesday following news of the bitcoin miner’s second land acquisition in Texas.
The analyst note, authored by Reggie Smith and Charles Pearce, claimed CleanSpark has a distinct position compared to its peers expanding into AI, with the company controlling nearly 1 GW of power capacity within 100 miles of large cities. This footprint includes infrastructure near Houston and Atlanta.
The analysts highlighted that CleanSpark noted its sites’ proximity to urban centers makes them particularly suitable for inference applications.
J.P. Morgan’s note follows the announcement that CleanSpark entered a definitive agreement to acquire 447 acres in Brazoria County, Texas. The site is located approximately 40 miles south of Houston, and CleanSpark plans to develop the land into an AI/HPC facility contingent on approvals.
The acquisition includes a long-term transmission extension agreement to supply an initial 300 MW of power. Infrastructure at the location holds the potential to support up to 600 MW over time. CleanSpark expects the transaction to close in the first quarter of 2026.
J.P. Morgan estimated the grid connection process will require 12 to 24 months. CleanSpark will tap local utilities to install high-voltage lines and an on-site substation during this period. The company may also begin engaging potential tenants or constructing a data center shell during this time.
The deal marks the second Texas acquisition for CleanSpark in less than three months, bringing CleanSpark’s total potential capacity in the state to approximately 885 MW. This includes the company’s 285 MW site in Austin County, Texas. CleanSpark expects initial energization of 200 MW at the Austin County site in the first half of 2027. Both of these Texas sites sit within 75 miles of Houston.
The analysts also pointed to ongoing interest in the company’s 230 MW bitcoin mine in Sandersville, Georgia as a potential spot for AI expansion.
Header image by Carol M. Highsmith via Wikimedia Commons.
