Key Highlights
- CleanSpark plans to raise $1 billion through convertible notes.
- $400 million will be used to buy back shares and support investors.
- The remaining funds will go toward AI projects, data centers, and Bitcoin-backed loans.
CleanSpark, a Bitcoin mining company based in Las Vegas, announced on November 10 that it intends to raise $1 billion by selling zero-coupon convertible notes. The notes, due in February 2032, will not pay regular interest. Investors can change the notes into CleanSpark stock or a mix of cash and shares, depending on what the company decides.
The first group of buyers will also have the opportunity to purchase an additional $200 million in notes within 13 days, if market conditions allow, according to the press release.
The company said it will use $400 million to buy back its own shares. The rest of the money will be used for other projects, including buying more land and power for operations, building new data centers, and paying off loans backed by Bitcoin (BTC).
Expanding into AI and Data Centers
The announcement comes a month after CleanSpark entered the AI sector with a new division focused on artificial intelligence (AI), led by industry expert Jeffrey Thomas. The company bought a 271-acre site in Texas to build a large AI data center that can handle 285 megawatts of power. Additionally, CleanSpark teamed up with Submer to try new cooling and building solutions for high-powered computers.
Moreover, the company is using the money it makes from Bitcoin mining to fund these projects. It recently reached a record mining speed of 50 exahashes per second and owns 13,011 BTC, its highest ever. In October, CleanSpark sold 589 BTC to pay for the Texas land and get power agreements for the new data center.
Earlier this year, CleanSpark got a $200 million credit line from Coinbase Prime, backed by its Bitcoin, and later added another $200 million through agreements with Coinbase and Two Prime. In its third quarter, the company saw a revenue growth of 91% to $198.6 million.
Despite this, CleanSpark’s shares have struggled. At the time of writing, the stock is down 5.56% and trades for $14.18 per share. It is roughly 25% below mid-October highs above $22.
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