CleanSpark is betting on what could be the largest strategic transformation in its history: expanding into AI data center infrastructure beyond its Bitcoin mining operations. Previously, the company had transitioned from an energy technology firm to one of the largest publicly traded Bitcoin mining companies in the world.

The company has signed a 20-year, $6.6 billion triple-net lease agreement with an unnamed global technology company to develop a 175 MW AI data center campus in Sandersville, Georgia. The agreement includes options that could increase the contract value to $11.6 billion, along with a letter of intent granting the tenant exclusivity rights over CleanSpark's planned Texas AI development portfolio, which could reach up to 885 MW of future capacity.

Leading this transformation is the company's President and Chief Financial Officer, Gary Vecchiarelli. He joined CleanSpark in 2021 as the company was continuously expanding its Bitcoin mining operations. Upon taking over the finance organization, he first rebuilt the accounting foundation and assumed the additional role of President last September, helping the company's power portfolio prepare for another strategic pivot.

The company's earlier shift from microgrid software development and energy management to Bitcoin mining brought significant upside but also caused shareholder confusion and attracted attention from short sellers. Vecchiarelli's predecessor, former CFO Lori Love, said in an exclusive 2024 interview with CFO.com that her experience as a finance executive at CleanSpark made her unwilling to take on any CFO role again.

Although Bitcoin mining remains an important business for CleanSpark, the company is now expanding into AI data center infrastructure to monetize its growing power portfolio. In a recent interview with CFO.com, Vecchiarelli explained why the company views AI as a natural evolution of its business and what it has learned from one of the most dramatic transformations in the Bitcoin mining industry.

Gary Vecchiarelli

Gary Vecchiarelli
Optional caption
Image used with permission from CleanSpark

President and Chief Financial Officer, CleanSpark

First became CFO in:2012

Key previous employers:

  • Galaxy Gaming
  • Golden Entertainment
  • Imatrex

This interview has been edited for clarity and brevity.

ADAM ZAKI: What was the biggest challenge you faced when you joined CleanSpark in 2021? Where did you focus first?

GARY VECCHIARELLI:When I joined, there were many pain points in the foundational work of the CFO role. We had material weaknesses in internal controls, the budgeting process was not up to standard, and the monthly financial close took too long. My first priority was rebuilding the accounting function.

To build a strategic finance organization, you first need a solid accounting foundation. Otherwise, it's 'garbage in, garbage out.' Without good, granular financial data, you can't forecast effectively or make informed business decisions.

As Frank Sinatra sang, I did it my way. I was able to choose the systems, build the team, and invest in accounting. Some companies view accounting as overhead, but if you don't invest in that foundation, it's hard for the business to take the next step.

Today, accounting runs largely autonomously under our Chief Accounting Officer. I only get involved when high-level decisions are needed. This allows me to spend more time on forward-looking thinking, capital allocation, lowering the cost of capital, and creating long-term value for shareholders.

You became President about a year ago while continuing as CFO. How has this change affected your role?

It wasn't something I expected. When Matt Schultz became CEO, he wanted to give me the President title, and I told him, 'I'll help you regardless; I don't need the title.' But he wanted to recognize the role I was already playing because I was able to help the company operate more effectively across departments.

As we expand into AI infrastructure, it became clear that finance needed to be more collaborative. To increase the likelihood of achieving our financial goals, we had to get every department pulling in the same direction.

One of the first initiatives I introduced was a goal-setting framework (Objectives and Key Results, OKRs), which came from reading John Doerr's 'Measure What Matters.' I read it over Thanksgiving weekend and was immediately drawn to it. I asked the leadership team to read it, and almost everyone voluntarily did. They embraced it because it provides a structured way to set goals, monitor progress, and keep the organization focused on a common north star. It's the framework companies like Google have used for years.

We've been using OKRs for two quarters now, and they've helped us execute more consistently. Increased focus within the organization has raised the probability of execution and made my forecasts more reliable. It also makes fundraising easier because I have more confidence in the organization's ability to achieve its goals. That's really my role as President: being the glue that brings people together and moves the organization in the same direction.

The company's business was built around Bitcoin mining. What made the team realize the company's future could also include AI infrastructure?

We come from energy. CleanSpark is an energy company that learned Bitcoin, not a Bitcoin company that learned energy. That's an important distinction because when the company entered Bitcoin mining, there were already larger, more experienced players. We were the last kids on the bus, yet we still became one of the largest and most efficient miners. We achieved 98% uptime, which made us an industry leader.

We see a similar late-mover advantage in AI. Even before the CEO transition, some of our peers had already pivoted toward AI infrastructure. Whether they saw the opportunity first doesn't matter. What matters is that we see the market rewarding companies that monetize megawatts through data centers rather than Bitcoin mining. As fiduciaries, we have to take that seriously.

One advantage of moving later is that we can watch how our peers chart the path. We can learn from their strategies, avoid many of their mistakes, and enter the market under more favorable conditions. Over the past 12 to 18 months, lease rates have risen while the cost of capital has dropped significantly.

These are the factors that led to this 20-year, $6.6 billion triple-net lease agreement. While the market has cooled somewhat and we haven't yet seen the valuations we ultimately expect, we view this as the first building block in creating a long-term business with sustainable cash flows.

CleanSpark has undergone multiple transformations. How do you keep yourself and your team focused during periods of rapid change?

First, you have to love change. If I did the same thing day in and day out, it would be incredibly boring. I enjoy variety and, to some extent, even volatility.

When things are going well, it's easy to stay motivated. The challenge comes when the stock price drops or you face difficult days. That's when it's important to keep your eyes on the horizon. If you believe in the direction and trust your team, you have to stay the course because the ship will eventually right itself.

I also never forget the responsibility that comes with this role. It's not just about signing financial statements or managing the company's finances. Many employees and their families depend on us, and I take that responsibility very seriously. We have teams in rural parts of America working in the rain, snow, and extreme heat to keep machines running and generate revenue because they believe in what we're building. Every employee at the company is also a shareholder, so it's crucial to deliver on the promises we make.

Knowing how hard those teams work motivates me to work just as hard. I may sit in a comfortable air-conditioned office, but I can't take their efforts for granted. I also think we've built a culture where people believe in the mission, which makes navigating change easier because everyone understands what we're collectively working toward.

You've worked across multiple industries throughout your career. Was that intentional?

It's really a byproduct of being a CPA and committing to lifelong learning. Public accounting trained me to walk into an environment, quickly identify the highest-risk areas, and address them. Working across industries, especially with middle-market companies, also gave me the opportunity to work alongside entrepreneurs making critical business decisions.

What I've learned is that regardless of industry, there are a lot of commonalities in how businesses operate. Most decisions ultimately come down to return on investment and risk management.

My career hasn't been driven by a desire to work across industries, but rather by a desire to work for companies whose products and services I believe in. If you're excited about what the company is building and the people you're working with, that will carry you through periods of change and volatility. Of course, there are a few industries I've deliberately avoided, but for the most part, it's happened organically.

How do you distinguish between chasing trendy opportunities and building a sustainable business?

We take Bitcoin mining very seriously. Many people don't understand Bitcoin and lump it together with other cryptocurrencies that are little more than 'pump-and-dump' schemes. I believe in the fundamental economics of Bitcoin, but there are also many companies that chased it simply because it was shiny and new and easy to raise money for.

Now in AI, you're seeing something similar. In every gold rush, there are those who think it's easy money. What's important is staying focused on the long game and not getting swept up in the excitement of the moment. We've seen companies in the Bitcoin mining industry raise money, make promises, and fail to deliver. We've also seen AI opportunities where some companies are clearly taking a 'fake it till you make it' approach. That's not how we choose to build our business.

Our philosophy has always been to walk through the front door, be honest about what we know and don't know, and focus on creating sustainable cash flow. If an area requires additional expertise, we bring in people who have that knowledge rather than pretending we already have it. I think too many companies in emerging industries overpromise early on, and when they fail to deliver, it damages the credibility of the entire market.

That's why execution is so important. Companies that consistently execute well in Bitcoin mining may not know much about AI data centers today, but they know how to build teams, allocate capital, and solve problems. Those skills are transferable across industries. If you stay disciplined and consistently deliver on your promises to investors, you'll be in a much better position over the long term.

In my interviews with CFOs of public companies, very few maintain an active CPA license. Why does that still matter to you?

When you get your CPA license, you're essentially committing to lifelong learning. You can continue learning without the license, but maintaining it helps me stay sharp in the core competencies my career has relied on.

I'm not going to be the top expert on every technical accounting or tax issue, but understanding future trends and how changes affect the business is crucial. At the end of the day, the reason I originally went into accounting is that every business decision results in a transaction that eventually shows up on the financial statements. Investors read those statements, and if I understand how today's decisions will ultimately impact the numbers, I'll be a better CFO.

Continuing professional education helps me keep up with those changes. Some of it is technical, while some focuses on leadership, technology, or people management. But staying current is important because the environment in which I sign financial statements and tax returns is constantly evolving.