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Cleanspark to raise $550 million in convertible notes

Cleanspark to raise 0 million in convertible notes

Bitcoin mining and technology company Cleanspark has announced plans to raise $550 million in a senior convertible note offering. As the company revealed, it is pricing the notes at 0% and will only make them available to accredited investors. Cleanspark said the convertible notes will mature in 2030.

Cleanspark plans exclude Bitcoin

The company’s update shows its intention to offer the notes to initial purchasers for resale in a private offering as securities. The company said it would cap the initial price of the notes at $24.66 per share of the company’s common stock. According to the filing, this amount represents a 100% premium to the stock’s closing price on December 12, 2024.

As an additional allocation, Cleanspark indicated that it may grant up to 13 days’ option to repurchase up to $100 million in aggregate principal amount of the Notes. If investors exercise this expanded buyout option, the Bitcoin mining company can raise up to $633.6 million.

While fundraising through convertible bonds is not uncommon among U.S. companies, the objective of this financing is different. Although it is a Bitcoin mining company, Cleanspark will not use capital to purchase additional BTC. Instead, it said it would spend $145 million on buying back shares from investors who participate in ticket sales.

Additionally, Cleanspark said it would deploy a portion of the funds to settle its credit line with the Coinbase exchange. The remaining capital will be dedicated to capital expenditures, acquisitions and general corporate purposes.

The unusual twist with Bitcoin mining companies

Unlike Cleanspark, other Bitcoin mining companies like Riot Platforms have raised funds by issuing senior convertible bonds. However, unlike the former, Riot Platforms used the transaction proceeds to purchase 5,113 Bitcoins for $510 million earlier on December 13.

MARA Holdings has also made this move in the past, reinforcing the thesis that Bitcoin miners are increasingly adopting BTC beyond daily mining operations.

These companies are learning from the MicroStrategy Bitcoin playbook. As previously reported, MicroStrategy increased its BTC stash to 423,650 units after its latest purchase of 21,550 Bitcoins for $2.1 billion. The goal of this company is for the price of the coin to continue to appreciate against the US dollar.

Thanks to the success of its cash reserves, MicroStrategy is now on track to be included in the Nasdaq-100 Index. Why Cleanspark refused to allocate any amount to Bitcoin remains a headache in the broader ecosystem.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive mainstream acceptance and global integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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