- CleanSpark secured a $100 million credit line from Coinbase Prime, backed by its Bitcoin reserves.
- The financing aims to support growth without reducing ownership for current shareholders.
- The company plans to use the funds for energy projects, mining expansion, and computing initiatives.
- Rising mining costs, lower transaction fees, and tariffs have pressured profit margins for miners.
- CleanSpark is now the tenth largest public holder of Bitcoin, with 12,703 BTC valued at about $1.43 billion.
CleanSpark announced on Monday that it has secured a $100 million credit line from Coinbase Prime, expanding its current financing arrangements. The credit, backed by the company’s Bitcoin holdings, will be used to improve liquidity as CleanSpark invests in growth without issuing new shares, according to Chief Financial Officer and President Gary A. Vecchiarelli.
The new funds will go toward energy expansion, mining growth, and new high-performance computing projects, the company stated. This move builds on previous steps, including a $200 million facility extended with Coinbase Prime in April. Vecchiarelli said in an official statement that the strategy enables “accretive growth using non-dilutive financing.”
In a prior earnings call, Vecchiarelli explained the approach helps CleanSpark avoid equity dilution, where new shares reduce the stake of current owners. “This represents a meaningful strategic distinction,” Vecchiarelli noted, in comparison to other mining companies that fund their operations with share offerings or increased borrowing.
As of now, CleanSpark holds 12,703 Bitcoin, which is worth about $1.43 billion based on the latest prices. According to Bitcoin Treasuries, this makes the company the tenth largest public holder of Bitcoin.
Other major miners, such as Hut 8 and Riot Platforms, have also increased their Bitcoin-backed credit lines with Coinbase this year, as network difficulty and equipment expenses hit record levels. Mining profit margins continue to narrow, with transaction fees falling below 1% of block rewards in August.
Recent tariffs on imported mining rigs from Asia have added to the financial strain, leaving U.S.-based companies like CleanSpark facing risks from past shipments.
According to Google Finance, CleanSpark shares have risen 33% over the past five days.
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