J.P. Morgan stays overweight CleanSpark, citing AI inference uses for Texas sites

Core Viewpoint - J.P. Morgan maintains an overweight rating on CleanSpark following the company's second land acquisition in Texas, highlighting its unique position in the market compared to peers expanding into AI [1][2]. Group 1: Acquisition Details - CleanSpark has entered a definitive agreement to acquire 447 acres in Brazoria County, Texas, located approximately 40 miles south of Houston, with plans to develop it into an AI/HPC facility pending approvals [2]. - This acquisition includes a long-term transmission extension agreement to supply an initial 300 MW of power, with infrastructure capable of supporting up to 600 MW over time [3]. - The deal marks CleanSpark's second acquisition in Texas within three months, increasing its total potential capacity in the state to approximately 885 MW, which includes a 285 MW site in Austin County [5]. Group 2: Infrastructure and Development Plans - CleanSpark expects the transaction to close in the first quarter of 2026, with the grid connection process estimated to take 12 to 24 months [3][4]. - During the grid connection period, CleanSpark will work with local utilities to install high-voltage lines and an on-site substation, and may also begin engaging potential tenants or constructing a data center shell [4]. Group 3: Strategic Positioning - The proximity of CleanSpark's sites to urban centers makes them particularly suitable for inference applications, enhancing the company's strategic positioning in the AI sector [2]. - Ongoing interest in CleanSpark's 230 MW bitcoin mine in Sandersville, Georgia, is also noted as a potential site for AI expansion [6].