CleanSpark Inc (CLSK)

[pcjockey]

Item 1.01 Entry into a Material Definitive Agreement.

Effective October 1, 2021, CleanSpark, Inc., a Nevada corporation, through its subsidiary CleanBlok Inc. (collectively, the “Company”) entered into agreements (the “Agreements”) with Georgia Power Company (“Georgia Power”), which Agreements set forth the terms and conditions that govern Georgia Power’s provision of electrical services (the “Services”) to the Company’s facilities in Norcross, Georgia. The Agreements have an initial term of five years, after which they shall remain in effect until terminated by either party. During the term of the Agreements, the Company shall make monthly payments to Georgia Power in exchange for the Services. The Company is on the Georgia Power Real Time Pricing (“RTP”) rate, where a portion of the usage is priced hourly and another portion is billed at a conventional rate.

Pursuant to the Agreements, the Company shall be entitled to purchase power from Georgia Power at the RTP rate in exchange for the Company’s agreement to purchase a minimum amount of power every month and to limit power usage during certain periods of peak use.

In addition, the Company agreed to pay Georgia Power a one-time fee of approximately $2.0 million to install certain excess facilities on the property.

The foregoing description of the Agreements does not purport to be complete, and is qualified in its entirety by reference to the complete text of such Agreements, copies of which will be filed as exhibits to the Company’s next periodic report.