CleanSpark Merges with GRIID Infrastructure in $155 Million All-Stock Deal
Summary:
CleanSpark, a Bitcoin miner, has announced a $155 million all-stock merger deal with GRIID Infrastructure. As part of the deal, CleanSpark will settle GRIID's debts and provide a $5 million working capital loan while also gaining 20 megawatts of power in an exclusive hosting agreement. Over the next few years, the merger is expected to supply CleanSpark with more than 400 megawatts of power. Prior to merging, GRIID operated two mining facilities in East Tennessee and a co-located facility in New York with majority of the capacity located in Tennessee. Following the merger announcement, CleanSpark's stock surged 2.2% to $16.44, marking a year-to-date increase of over 50%.
In a declared $155 million merger deal, Bitcoin miner CleanSpark has joined hands with GRIID Infrastructure. As per the statement made on June 27, CleanSpark has fully acquired all common stock of GRIID in an all-stock agreement. The contract requires CleanSpark to take responsibility for all of GRIID’s financial liabilities, as well as concluding an exclusive hosting contract which assigns CleanSpark with 20 megawatts of power. Additionally, a $5 million operational capital loan along with $50.9 million to address immediate commitments has been given to GRIID by CleanSpark. The merger is projected to contribute over 400 megawatts of power to CleanSpark in the coming few years. CleanSpark’s CEO, Zach Bradford said, “Our plan is to surpass 100 megawatts in Tennessee by year-end, followed by extending it to 200 megawatts in 2025 and then more than 400 megawatts in 2026, while persistently working alongside local communities in developing infrastructure for up to one gigawatt of data center operations in Tennessee." The company's stocks denoted as CLSK saw a rise of 2.2% to $16.44 on June 27, recording a year-to-date progress of over 50%. As of February 2024, GRIID operated two mining facilities in eastern Tennessee and a co-located facility in New York amassing a total of 68 megawatts mining capability with a major chunk located in Tennessee. The company had earlier this year communicated about their intentions of raising its mining capability in the Tennessee Valley to nearly 150 megawatts. Its headquarters are in Cincinnati, Ohio. Bitcoin miners are recently seen to be broadening their range of data centers. Marathon Digital, as an illustration, procured two operational mining sites from Generate Capital in December, thereby, doubling its hashrate over a span of the two years. In June, CleanSpark disclosed of acquiring additional five mining facilities in Georgia initiating 60 megawatts of power to its functioning. In March, the company divulged plans of selling stocks worth up to $800 million and obtaining extra capital, according to a filing with the Securities and Exchange Commission. It's important to note that a growing trend of substance abuse among cryptocurrency traders is highlighted in a recent magazine issue titled, "This is your brain on crypto".
Published At
6/27/2024 7:40:02 PM
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