- CleanSpark is raising $1.15 billion via senior convertible notes to expand Bitcoin mining and data center infrastructure.
- $460 million will be used to repurchase common stock, with the rest funding power and land acquisition, infrastructure development, debt repayment, and corporate expenses.
- CleanSpark ranks as the second-largest Bitcoin miner globally by operating hashrate at 46.60 EH/s.
- Bitcoin mining companies are diversifying into Artificial Intelligence (AI) infrastructure amid industry shifts following Bitcoin halving events.
- Recent deals highlight collaboration between miners and AI firms, including agreements with Microsoft and AI cloud providers.
CleanSpark, a Nasdaq-listed Bitcoin mining company, announced on Tuesday a senior convertible note offering worth $1.15 billion to finance the expansion of its Bitcoin mining and data center operations. The company expects to raise approximately $1.13 billion in net proceeds, potentially increasing to $1.28 billion if initial purchasers exercise their additional purchase options. The offering is scheduled to close on November 13, subject to conditions.
The company plans to use $460 million from the proceeds to repurchase common stock from investors in privately negotiated transactions at $15.03 per share or the Nasdaq closing price on the preceding Monday. The remaining funds will support growth in the company’s power and land assets, data center infrastructure development, repayment of Bitcoin-backed credit balances, and general corporate costs. This follows a similar $550 million private convertible note offering completed in December 2024.
Currently, CleanSpark operates at 46.60 exahashes per second (EH/s), making it the second-largest Bitcoin miner worldwide, as per Bitcoinminingstock.io. The mining company is part of a broader trend among major Bitcoin miners expanding into artificial intelligence (AI) data infrastructure to diversify revenue streams, partly in response to pressures from Bitcoin halving events.
Shares of CleanSpark rose by 13% following the announcement of its AI infrastructure expansion on October 20. According to Scott Garrison, chief development officer and executive vice president, “We have been reviewing the entire portfolio from first principles to evaluate AI suitability and have identified Georgia as a strategic region for both potential conversion as well as expansion.”
Other industry examples include IREN’s five-year, $9.7 billion agreement to provide Microsoft access to NVIDIA GPUs hosted in its data centers, and Core Scientific’s $3.5 billion deal with AI cloud provider CoreWeave to supply an additional 200 megawatts of high-performance computing (HPC) infrastructure. This latter agreement is expected to generate over $3.5 billion throughout a 12-year contract and contributed to Core Scientific’s recovery from Chapter 11 bankruptcy filing in 2022.
These developments underscore the increasing synergy between Bitcoin mining firms and AI infrastructure providers as companies seek to leverage existing data center assets in evolving markets.
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