CleanSpark completes upsized $1.15 billion convertible notes offering to support expansion
Quick Take The Nasdaq-listed mining firm said it has closed an $1.15 billion offering of zero-coupon convertible senior notes. As part of the transaction, CleanSpark bought back 30.6 million shares — about 10.9% of its outstanding common stock — for roughly $460 million.
Bitcoin mining firm CleanSpark has completed an upsized $1.15 billion offering of zero-coupon convertible senior notes to expand its operations.
The Nasdaq-listed firm announced Thursday that the convertible notes due 2032 were sold to institutional buyers in a private offering. After deducting fees and expenses, CleanSpark received roughly $1.13 billion in net proceeds.
As part of the transaction, CleanSpark repurchased 30.6 million shares of its common stock — equivalent to roughly 10.9% of shares outstanding — for about $460 million from investors participating in the offering.
The company said it plans to use the remaining proceeds for power and land acquisition, data-center development, repayment of bitcoin-backed credit lines and general corporate purposes.
"This transformative $1.15 billion offering marks a defining moment in CleanSpark's growth as a leading energy and infrastructure compute platform, strengthened by the support of world-class institutional investors," said Matt Schultz, chairman and CEO of CleanSpark.
"Our repurchase of more than 10% of our outstanding shares for approximately $460 million reinforces our confidence in the business we're building and our commitment to long-term value creation," Schultz added.
Last month, the bitcoin mining firm announced plans to move into AI-oriented data center infrastructure and acquired rights to 271 acres in Austin County, Texas, for its expansion.
CleanSpark's stock closed down 10.13% at $11.98 on Thursday, according to The Block's price page . The shares have dropped 40.2% over the past month.
CleanSpark's financing adds to a growing wave of crypto companies turning to convertible debt. TeraWulf closed a $1 billion zero-coupon convertible notes offering last month, and Galaxy Digital also unveiled a $1.15 billion exchangeable notes offering.
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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