- CleanSpark aims to raise $1 billion through convertible bond offering.
- Funds will support share repurchases and expansion into AI infrastructure.
- CleanSpark eyes new data centers and land acquisitions for growth.
CleanSpark, a prominent bitcoin mining firm, is looking to raise up to $1 billion through a private offering of zero-coupon convertible senior notes. The Nasdaq-listed company plans to use the majority of the proceeds for expanding its operations, including repurchasing its own shares.
The firm intends to allocate up to $400 million to buy back its stock, with the remaining funds earmarked for expanding its power and land portfolio, developing new data center infrastructure, and repaying bitcoin-backed credit lines. The convertible bonds, which will mature on February 15, 2032, will not carry regular interest payments. Instead, they may be converted into cash, shares, or a combination of both at CleanSpark’s discretion.
Additionally, CleanSpark is offering initial purchasers the option to buy up to $200 million in additional bonds. These zero-coupon notes are senior unsecured obligations, and while they carry more risk, they also hold potential for higher returns if the company’s stock price increases. The offering is expected to price before U.S. markets open on Tuesday.
Also Read: Ethereum Supply Hits 1-Year Low: Massive Whale Accumulation Sparks Bullish Signals!
Expansion into AI and Data Centers
This fundraising initiative comes as CleanSpark expands beyond bitcoin mining. Recently, the company has ventured into the artificial intelligence (AI) sector and made a strategic land acquisition in Austin County, Texas, where it plans to build new data centers. This expansion into AI and data infrastructure is a key part of CleanSpark’s strategy to diversify its revenue streams.
Despite facing challenges in the market, with its stock dropping 22% over the past month, CleanSpark has remained resilient. The company has seen a 63% increase in its stock price so far this year, demonstrating solid growth.
Through this latest convertible bond offering and its strategic investments, CleanSpark aims to position itself for continued success in the evolving cryptocurrency and AI sectors. The company’s efforts to repurchase shares are expected to support investor confidence while helping to fund its long-term growth ambitions.
Also Read: Canary Capital CEO Drops Major Bullish Comment on XRP, Army Reacts
