CleanSpark Raises $1.15B to Expand Bitcoin Mining and AI Data Centers

Bitcoin mining company CleanSpark is making a big move to grow its business by raising $1.15 billion. As announced, the Nasdaq-listed company said it will use the money to expand its mining operations and improve its finances. 

This shows CleanSpark’s goal to become a top player in both crypto mining and the technology sector.

Upsized Convertible Notes Fuel Expansion

On November 13, CleanSpark announced it completed larger offering by offering zero-coupon convertible senior notes due in 2032.The notes were sold privately to institutional investors, bringing in about $1.13 billion in net proceeds after fees and expenses. 

The funds give CleanSpark the financial resources to expand its Bitcoin mining operations and invest in new data centers. It will also help the company acquire power and land assets and support general corporate needs.

This financing comes after the mining firm achieved a significant milestone by amassing 10,097 BTC in its treasury. This massive crypto stash placed the CleanSpark among the top four publicly listed miners holding more than 10,000 BTC

Furthermore, CleanSpark plans to use the remaining proceeds to repay Bitcoin-backed credit lines and for general corporate purposes. 

CleanSpark Expands Into AI Data Centers and Buys Back Shares

The Bitcoin miner is not just focused on cryptocurrency.  Last month, the company announced plans to move into AI-focused data center infrastructure. It had secured rights to 271 acres in Austin County, Texas, to support its expansion. 

Combining crypto mining with AI data centers shows CleanSpark’s focus on building a diversified approach to growth in the technology and energy sectors.

On top of that, CleanSpark revealed that it repurchased 30.6 million shares of its common stock as part of the financing. This represents about 10.9% of its outstanding shares, for roughly $460 million. 

In a recent statement CEO Matt Schultz said the repurchase shows the company’s confidence in its business and its commitment to long-term shareholder value. 

CleanSpark Stock Falls After Big Financing

Despite the large financing, CleanSpark’s stock closed down 10.13% at $11.98 on November 13. Over the past month, shares have dropped more than 40%. This decline comes amid a wider trend of crypto companies raising funds through convertible debt. 

TeraWulf raised $1 billion through zero-coupon convertible notes last month. At the same, Galaxy Digital also launched a $1.15 billion exchangeable notes offering.

With strengthened capital and an eye on AI and data center infrastructure, the company is positioning itself for growth in both cryptocurrency mining and technology infrastructure.