CleanSpark completes the issuance of 1.15 billion USD in convertible bonds to support expansion

CleanSpark has completed the issuance of $1.15 billion in zero-coupon convertible bonds, receiving approximately $1.13 billion after costs. In this transaction, the company also acquired 30.6 million shares, equivalent to 10.9% of the outstanding shares, at a price of about $460 million.

The remaining capital will be used for the acquisition of electricity - land, developing data centers, repaying mortgage loans in BTC, and general business purposes.

CEO Matt Schultz called this a “major turning point” for CleanSpark's expansion strategy, as the company is making a strong shift towards data center infrastructure for AI.

CleanSpark's stock closed down 10.13% at 11.98 USD and has decreased by more than 40% in a month.

This move follows a wave of many crypto companies raising funds through convertible bonds, such as TeraWulf and Galaxy Digital.