CleanSpark Launches $1.15B Convertible Note Offering to Expand Bitcoin and AI Operations

Nasdaq-listed Bitcoin mining elephantine CleanSpark has announced plans to rise $1.15 cardinal done a elder convertible enactment offering to grow its Bitcoin mining capableness and accelerate its propulsion into artificial quality (AI) infrastructure.

Key Takeaways:

• CleanSpark is raising $1.15 cardinal done a convertible enactment offering to grow its Bitcoin mining and AI infrastructure operations.

• The institution volition allocate $460 cardinal for a banal buyback and usage the remainder to turn its information center.

• The determination reflects a wider manufacture pivot toward AI and high-performance computing.

The institution expects to make astir $1.13 cardinal successful nett proceeds, oregon up to $1.28 cardinal if underwriters afloat workout their options.

The offering is acceptable to adjacent connected November 13, taxable to modular closing conditions, CleanSpark said Tuesday.

Of the proceeds, $460 cardinal volition spell toward repurchasing communal banal from investors, portion the remainder volition beryllium utilized to grow the firm’s powerfulness and onshore portfolio, make information halfway infrastructure, repay Bitcoin-backed loans, and screen wide firm costs.

CleanSpark said the banal repurchases volition hap done privately negotiated transactions astatine $15.03 per share, matching Monday’s Nasdaq closing price.

The determination comes astir a twelvemonth aft the institution raised $550 cardinal successful a akin backstage convertible enactment offering completed successful December 2024.

According to Bitcoinminingstock.io, CleanSpark ranks arsenic the world’s second-largest Bitcoin miner, boasting an operational hashrate of 46.6 exahashes per 2nd (EH/s), trailing lone Marathon Holdings.

The backing propulsion aligns with a broader manufacture displacement toward AI and high-performance computing (HPC).

Following April’s Bitcoin halving, which chopped artifact rewards by half, miners person been exploring ways to repurpose excess vigor and infrastructure for AI workloads to offset shrinking nett margins.

CleanSpark’s banal jumped 13% successful precocious October aft it announced its AI enlargement strategy.

Chief improvement serviceman Scott Garrison said the institution has identified Georgia arsenic a “strategic region” for some imaginable conversion and aboriginal expansion.

The inclination extends beyond CleanSpark. In caller months, IREN secured a $9.7 cardinal woody with Microsoft to big AI GPUs successful its information centers, portion Core Scientific signed a $3.5 cardinal statement with CoreWeave to proviso 200 megawatts of HPC infrastructure.

Once a struggling miner that filed for bankruptcy successful 2022, Core Scientific has since revived its fortunes done its AI partnership, a displacement that CleanSpark appears acceptable to mirror.