CleanSpark Secures $100M Bitcoin-Backed Credit From Coinbase

CleanSpark secures $100M Bitcoin-based credit with Coinbase Prime to expand the mining and high-performance computing business.

CleanSpark, Inc. America’s Bitcoin Miner ®, has been granted a 100 million credit facility by Coinbase Prime, backed by Bitcoin. 

This non-dilutionary funding will aid the growth of CleanSpark’s energy portfolio, Bitcoin mining, and high-performance computing (HPCs). 

The strategic action will mark a significant advance in their capital strategy to obtain the best asset value without disposing of Bitcoin assets.

Expanding Capital Reach With Bitcoin Collateral

CleanSpark pledges a part of its about 13000 Bitcoin holdings to secure this credit line, allowing the company to raise cash without the equity dilution/sale of Bitcoin holdings. 

They intend the infusion to expand their mining business and support the search for alternative applications for data centers.

CleanSpark CEO Matt Schultz highlighted the potential that existed as a result of this increased access to capital.

And underscoring the intention to add megawatts in their portfolio and build high-performance computing campuses near urban centers. 

The company is aiming to maximize its assets to further expand its energy and computing development beyond conventional Bitcoin mining.

Diverse Growth and Non-Dilutive Financing Strategy

Brett Tejpaul, the manager of Coinbase Institutional, eulogized the innovative capital expansion strategy used by CleanSpark, saying their Coinbase Prime business provides secure and regulated infrastructure and custody services fundamental to the expansion of digital asset strategies.

The CFO of CleanSpark, Gary A. Vecchiarelli, reiterated the company’s commitment to accretive growth through non-dilutive financing.

He considers the CleanSpark, Infrastructure First approach as one of the solutions to increasing shareholder value by diversifying its portfolio by adding high-performance computing, in addition to its conventional mining.

This strategy puts CleanSpark in a competitive position against companies in a rapidly developing market where Bitcoin miners are increasingly integrating AI and HPC job types in their data centers in order to optimize energy resources and establish future growth opportunities. 

The new $100 million line of Coinbase Prime is the next move after the change of leadership towards diversified digital asset revenue streams.

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