Matt Schultz, CEO of CleanSpark, joins the show to discuss how Bitcoin miners are navigating the growing power crunch driven by the rapid expansion of AI data centers. As demand for electricity surges, Matt explains that Bitcoin miners are uniquely positioned due to their ability to utilize stranded energy assets and operate as “interruptible loads,” meaning they can quickly scale power usage up or down based on grid demand. This flexibility creates a potential synergy with AI and high-performance computing (HPC) data centers, which require consistent uptime. Drawing on insights from a study by Duke University, Matt highlights that there may be significant untapped grid capacity if managed efficiently. He also dives into the intensifying competition for energy, noting that CleanSpark currently controls 1.8 gigawatts of power and is seeing strong demand from hyperscalers looking to secure capacity. The conversation explores why electricity is becoming one of the most valuable assets in the digital economy, the strategic importance of land and power ownership, and how CleanSpark is positioning itself through major site acquisitions in Texas, including developments near Houston and Austin. As the worlds of Bitcoin mining and AI infrastructure converge, Matt outlines how energy strategy will define the next phase of growth across both industries.
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Joining us now is Matt Schultz.
He is the CEO of Clean Spark, a publicly traded company, uh, here to talk about the ways that Bitcoin miners are navigating a bit of a power crunch from data centers and AI expansion.
Matt, it's really good to have you here.
So, You know, we're talking a lot about AI data center buildouts and the accompanying energy-related concerns.
The data centers are competing oftentimes for the same electricity as Bitcoin miners.
Talk to me about where you see the industry headed, with a lot of questions over a legitimate power shortage.
What does it look like from your end, Matt?
Yeah, um, you know, Bitcoin miners are uniquely positioned because there was, um, stranded assets all around the country for the last several years, and Bitcoin miners can move in.
Um, secure land and power, and quickly monetize those megawatts.
So, now, as we're seeing an increase in demand from AI data centers, it's a different type of load.
You know, Bitcoin mining is an interruptible load, where if there's a demand signal on the grid that there's a black swan event or a severe weather event, we can rapidly curtail and send power back.
Um, data centers are more of a fixed, you know, 5 9s kind of uptime requirement, but I think interestingly, the Nicholas School at Duke University did a study and said that there's an extra 100 gigawatts of capacity on the grid for AI data centers today, utilizing what they called curtailment enabled headroom, meaning that if those loads can be offline 0.01% of the time over the course of a year, there's plenty of capacity on the grid.
So, pairing Bitcoin mining, which is interruptible, with AI data centers is, is, is really kind of a unique approach, and that's how we're moving into the market.
How intense is the competition right now between AI data centers and Bitcoin miners for cheap power?
You know, I think it's interesting.
We, Clean Spark has 1.8 gigawatts of power under contract currently, and we, and we announced back in November that we expected to begin to monetize some of our megawatts differently, utilizing AIHPC data centers, um, leases with hyperscales, and the inbound inquiry and the demand for that power is incredible.
Um, the conversations we've had with utilities indicates that the, the demand is significant, and, and the challenge is that they look to overbuild capacity, so there's always Um, headroom on the grid, but if it's not used, then it's wasted.
So, you know, it's a, it's kind of an interesting dynamic.
Energy storage is still the kind of the jury is out on degradation, and, and, and long-term sustainability of battery energy storage.
So, there, there are some unique challenges, but the competition is, is incredible.
What we're finding is many utilities have Um, pockets of power that they don't want to sign a fixed load agreement, but they're interested in blockchain-specific tariffs.
So what we're doing is migrating some of our Bitcoin mining to those areas that have less sensitivity, and focusing the, the fixed load stuff in some of the more major metropolitan areas in which we operate.
Uh, is it fair to say electricity is the most valuable asset right now in the digital economy?
Yeah, as a matter of fact, um, Elon Musk said, uh, chip production is increasing by an order of magnitude, um, Lithography for chip printing, um, there was $15 billion in capex spent in Q4, but what he commented was, what we aren't doing fast enough is electrical grid energization.
So, there, there's a legitimate constraint.
So, I think owning land and power puts you in a, a real strong position in this market.
Yeah, I know you've been acquiring large power sites in the state of Texas.
First of all, talk to me about those locations.
And number 2, is securing power right now, uh, a, a large competitive edge in the world of mining.
Yeah, massive.
Um, we have, you know, I, I, I think a number of sites that are very favorable to AI and HPC loads.
Some are more tailored towards um training models.
Uh, some are more tailored towards inference models, but what we've done, the two sites we recently talked about are both, you know, Driver 9 Iron outside of Houston, and a real critical market for AI and HPC between Houston and Austin.
So, they're, they're very favorable locations.
We secured enough land.
That we can build a data center for a hyperscaler, um, you know, with any different number of rack densities, depending on the architecture that they're looking for and the cloud, uh, or, or the, the cluster that they're deploying.
So, um, having, having secured that land, and most importantly, both of the prospects we acquired in Texas. are already through the large load study process with ERCO.
So it's not a, a hypothetical that at some point, someday, maybe in the future, they might.
Um, these have energization schedules that begin as early as 2027.
CLSK, that's the ticker symbol, the company Clean Spark, the CEO Matt Schultz.
Matt, thanks for being here.
Nice to have you.
Thanks, JD.