CleanSpark Raises $1.15 Billion Through Convertible Notes Offering

TLDR

• CleanSpark raised $1.15 billion through a private offering of zero-coupon convertible senior notes.
• The company repurchased 30.6 million shares, or 10.9% of its outstanding shares, for about $460 million.
• CleanSpark plans to use the proceeds for power and land acquisitions, data-center development, and repaying bitcoin-backed credit lines.
• The firm aims to expand into AI-driven data center infrastructure by acquiring 271 acres in Austin County, Texas.
• CleanSpark’s stock closed down 10.13% on the day of the offering, reflecting broader market challenges.

CleanSpark, a leading Bitcoin mining firm, has completed an upsized offering of $1.15 billion in zero-coupon convertible senior notes. The firm announced Thursday that it sold the convertible notes, due in 2032, to institutional buyers in a private offering. The net proceeds, after expenses, amount to $1.13 billion.

The company has repurchased 30.6 million shares of its common stock from the offering participants. This share repurchase represents approximately 10.9% of CleanSpark’s outstanding shares and cost around $460 million. CleanSpark intends to use the remaining proceeds for future investments in power, land, and data-center development, as well as to repay Bitcoin-backed credit lines.

CleanSpark Strengthens Growth Plans with the Offering

Matt Schultz, CleanSpark’s chairman and CEO, emphasized the importance of the transaction. “This transformative $1.15 billion offering marks a defining moment in CleanSpark’s growth,” Schultz stated. He added that the repurchase of more than 10% of the company’s shares reinforces CleanSpark’s confidence in its long-term value creation strategy.

The company also highlighted its expansion efforts, including plans to move into AI-driven data center infrastructure. CleanSpark recently acquired rights to 271 acres of land in Austin County, Texas, to support this growth. The firm is positioning itself as a leader in energy and infrastructure for cryptocurrency mining.

Crypto Companies Secure Funds Through Convertible Notes

CleanSpark’s move comes as part of a growing trend among cryptocurrency companies to raise funds through convertible debt. Last month, TeraWulf raised $1 billion through a similar zero-coupon convertible note offering. Galaxy Digital also revealed a $1.15 billion exchangeable notes offering, showing a shift in how these companies are securing capital for expansion.

Despite the success of the offering, CleanSpark’s stock has faced recent challenges. The stock closed down 10.13% at $11.98 on Thursday. Over the past month, the shares have dropped 40.2%, reflecting broader market pressures on the company’s stock performance.

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