CleanSpark Utilizes Bitcoin Holdings to Drive Expansion Through Infrastructure
- CleanSpark secured $400M in non-dilutive Bitcoin-backed loans via Coinbase Prime and Two Prime, leveraging 13,000 BTC ($1.4B) to preserve shareholder equity. - Funds will expand data centers, boost Bitcoin hashrate, and scale HPC infrastructure, aligning with the company's "Infrastructure First" capital strategy. - The move reflects a broader industry trend of Bitcoin miners using BTC as collateral rather than selling it, with Two Prime's 62.5% LTV facility showcasing risk-mitigated lending structures. -
CleanSpark, Inc. (Nasdaq: CLSK) has broadened its non-dilutive funding avenues by obtaining two Bitcoin-backed credit lines of $100 million each, raising its total secured borrowing power to $400 million CleanSpark Expands Credit Capacity to $400M with Two Bitcoin-Backed Facilities [ 1 ]. The initial credit line, revealed on September 22, 2025, was arranged through Coinbase Prime, while the second, made public on September 25, was established with Two Prime, an institutional
The capital will be used to speed up the expansion of data centers, boost Bitcoin mining capacity, and grow high-performance computing (HPC) infrastructure CleanSpark Opens $100M Bitcoin-Backed Credit Facility with Two Prime [ 2 ]. CEO Matt Schultz noted the company’s intention to strategically deploy these funds to “optimize the current megawatts in our portfolio, fast-track the development of high-performance compute campuses, and increase investments in our Digital Asset Management initiatives” CleanSpark Opens $100M Bitcoin-Backed Credit Facility with Two Prime [ 2 ]. The non-dilutive approach fits with CleanSpark’s “Infrastructure First” capital plan, which favors operational expansion over issuing new equity CleanSpark Opens $100M Bitcoin-Backed Credit Facility with Two Prime [ 8 ]. CFO Gary Vecchiarelli pointed out that most of the $400 million credit remains unused, giving CleanSpark the flexibility to quickly repay debt if necessary CleanSpark Opens $100M Bitcoin-Backed Credit Facility with Two Prime [ 2 ].
These credit lines are part of a larger movement in the industry, where Bitcoin miners are leveraging their crypto holdings as collateral rather than liquidating them. CleanSpark’s strategy is similar to that of other companies like Riot Platforms and Marathon Digital, who also use their Bitcoin assets to secure financing CleanSpark Adds Second $100M Bitcoin Credit Line This Week [ 5 ]. The Two Prime facility, for example, is structured with a 62.5% loan-to-value ratio and an initial collateralization of 160%, and includes risk management features such as a 135% collateral call and a 125% liquidation trigger CleanSpark Taps Two Prime for $100M Bitcoin-Backed Loan at [ 4 ]. The annual interest rate is set at Term SOFR plus 3.55%, currently totaling about 7.71% CleanSpark Taps Two Prime for $100M Bitcoin-Backed Loan at [ 4 ]. This arrangement demonstrates the growing maturity of Bitcoin-backed lending as an alternative to conventional debt or equity financing, especially for companies with significant Bitcoin holdings.
CleanSpark’s move into HPC and energy infrastructure signals a shift from its previous focus as a dedicated Bitcoin miner. The company intends to convert some of its data centers near metropolitan areas into HPC campuses, opening up new revenue opportunities in AI and data-heavy computing. This transition is in line with peers like Core Scientific and TeraWulf, who have also expanded into HPC to meet rising demand for computational resources. The Coinbase Prime facility, which includes a $100 million increase to an existing $200 million line, also supports CleanSpark’s growth in the energy sector Coinbase Grants CleanSpark $100 Million Bitcoin-Backed Credit [ 6 ]. By focusing on both Bitcoin mining and HPC, CleanSpark aims to reduce risks tied to Bitcoin price swings while pursuing higher-margin computing ventures.
The rise of Bitcoin-backed lending is reshaping the broader crypto landscape. Institutional lenders such as Two Prime and Coinbase Prime are increasingly providing secured loans to organizations holding Bitcoin, with Two Prime’s $3 billion lending capacity and Coinbase’s facilities exceeding $500 million reflecting the sector’s expansion CleanSpark Opens $100M Bitcoin-Backed Credit Facility with Two Prime [ 2 ] CleanSpark Loosens Pure-Bitcoin Focus With Coinbase Loan [ 9 ]. These trends underscore Bitcoin’s growing acceptance as collateral, with miners and corporate treasuries treating it as a strategic asset. For CleanSpark, the ability to raise funds without diluting shareholders strengthens its position in a capital-intensive sector while maintaining exposure to Bitcoin’s potential value growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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