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CleanSpark (Nasdaq: CLSK) stock was on the move Monday on news that the Bitcoin miner was expanding into AI data centers.

CleanSpark is one of the largest Bitcoin mining firms in the country. In September, it produced 629 Bitcoin at a hashrate of 50.0 EH.

CleanSpark is following other Bitcoin miners that have made a similar leap, including Core Scientific, Iris Energy, Riot Platforms, Cipher Mining, and Bitdeer Technologies, to name a few.

It is a logical step, as Bitcoin miners have the infrastructure and massive computing power largely in place to move into hosting high performance computing AI data centers. It puts these companies at the center of two booming industries, AI and cryptocurrency.

CleanSpark stock jumped about 11% on the news Monday to around $22 per share. This year, CleanSpark shares have risen an astronomical 137% YTD.

Industry veteran tapped to lead AI effort

The company hired Jeffrey Thomas to lead the data effort, serving as senior vice president of AI data centers. Thomas brings over four decades of experience to the role, joining CleanSpark from Humain, a Saudi Arabian AI data center company.

As president of AI data centers at Humain, Thomas led the Kingdom of Saudi Arabia’s multi-billion AI data center program.

“Jeffrey’s decades of experience building and scaling digital infrastructure platforms make him an exceptional addition to our leadership team,” Matt Schultz, CleanSpark’s CEO and chairman, said.

Thomas called this a pivotal moment for CleanSpark.

“Together, we have a tremendous opportunity to deliver exceptional solutions for our customers while creating long-term value for shareholders and positioning CleanSpark at the center of the AI and intelligent computing revolution,” Thomas said.

Georgia eyed for AI data center

CleanSpark officials are eyeing Georgia as a site to convert or expand facilities for AI data centers.

“We recently contracted for additional power and real estate in College Park to deliver high-value compute to the greater Atlanta metro area and are evaluating giga-campus opportunities across the portfolio and pipeline that are well positioned to satisfy significant off-taker demand,” CleanSpark chief development officer Scott Garrison said.

The expansion beyond Bitcoin mining is designed to diversify CleanSpark’s revenue streams, strengthen its cash flow, and better serve leading technology companies.

CleanSpark stock is considered a consensus buy among analysts with a median price target of $23.50, suggesting 10% growth.

Analysts at Clear Street said CleanSpark’s move into AI data centers was widely anticipated. They say CleanSpark is well positioned to make the move given its “strong execution, low-cost power base, and balance-sheet flexibility,” reported the Fly.com. Clear Street maintained its $30 price target for CleanSpark.

CleanSpark is coming off a huge quarter where revenue increased 91% and it was profitable with net income of $267 million, or 90 cents per share. That’s up from a net loss $1.03 per share in the same quarter a year ago. Trading at just 17 times earnings, it has relatively low valuation.

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