CleanSpark Shares Jump After $100M Bitcoin-Backed Deal With Coinbase Prime

Bitcoin mining and energy firm CleanSpark saw its stock climb about 5% in after-hours trading Monday after announcing a $100 million financing agreement with Coinbase Prime, the institutional division of the major crypto exchange. 

The deal gives CleanSpark additional credit by using a portion of its 13,000 Bitcoin holdings as collateral, with plans to channel the funds into expanding both its Bitcoin mining operations and high-performance computing (HPC) infrastructure.

Scaling Mining and High-Performance Computing

CleanSpark’s shares closed at $13.74 on September 22 and quickly rose to $14.44 following the announcement. The financing will help the company broaden its energy portfolio and build new computing capabilities at a time when many large mining firms are pivoting toward artificial intelligence and other advanced computing applications.

Harry Sudock, CleanSpark’s chief business officer, stated in an interview the company is not measuring its growth in terms of a fixed ratio between Bitcoin mining and HPC. “What we’re really looking to do is maximize the value of every asset,” he explained. “That starts with a comprehensive review of every power contract, plot of land, and energy relationship we have today.”

Sudock emphasized the importance of flexibility in deploying energy resources. “Some parts of our power pipeline might not fit Bitcoin mining but would be a phenomenal fit for high-performance computing,” he said.

Building on Strong Financial Momentum

This latest agreement continues a pattern of Bitcoin-backed financing for CleanSpark. Including the new line of credit, the company has now secured roughly $300 million in BTC-backed loans through its partnership with Coinbase Prime. 

Sudock stressed that only a portion of its Bitcoin reserves is being pledged, allowing CleanSpark to maintain significant holdings while putting idle assets to work. “We’re holding nearly 13,000 Bitcoin on the balance sheet, and we want that Bitcoin to work for us and our shareholders,” he said.

The financing follows CleanSpark’s strongest quarter on record, with $198.6 million in revenue for Q3 and a production total of 657 BTC in August, a 37.5% increase year over year. By leveraging its growing Bitcoin reserves for credit, CleanSpark aims to expand its energy and computing capacity without diluting shareholder value.