CleanSpark Secures Whopping $1.15B in Convertible Notes—Bullish Bet or Desperate Gambit?

Bitcoin miner CleanSpark just pulled off a $1.15 billion power move—but is it fueling growth or masking cracks?

The Convertible Notes Playbook

Convertible notes: the financial Swiss Army knife for companies that want funding without spooking shareholders. CleanSpark’s massive raise suggests either aggressive expansion plans or a scramble to cover rising energy costs. Pick your narrative.

Wall Street’s Schrödinger’s Cat

Investors are treating this like a quantum superposition—simultaneously a bullish signal (look at that war chest!) and a red flag (dilution incoming?). The market’s reaction will reveal which interpretation collapses first.

The Cynic’s Corner

Another day, another crypto company using financial engineering to avoid saying ‘equity raise’ out loud. At least they didn’t call it an ‘innovative capital solution.’

TLDR

• CleanSpark raised $1.15 billion through a private offering of zero-coupon convertible senior notes.
• The company repurchased 30.6 million shares, or 10.9% of its outstanding shares, for about $460 million.
• CleanSpark plans to use the proceeds for power and land acquisitions, data-center development, and repaying bitcoin-backed credit lines.
• The firm aims to expand into AI-driven data center infrastructure by acquiring 271 acres in Austin County, Texas.
• CleanSpark’s stock closed down 10.13% on the day of the offering, reflecting broader market challenges.

CleanSpark, a leading Bitcoin mining firm, has completed an upsized offering of $1.15 billion in zero-coupon convertible senior notes. The firm announced Thursday that it sold the convertible notes, due in 2032, to institutional buyers in a private offering. The net proceeds, after expenses, amount to $1.13 billion.

The company has repurchased 30.6 million shares of its common stock from the offering participants. This share repurchase represents approximately 10.9% of CleanSpark’s outstanding shares and cost around $460 million. CleanSpark intends to use the remaining proceeds for future investments in power, land, and data-center development, as well as to repay Bitcoin-backed credit lines.

CleanSpark Strengthens Growth Plans with the Offering

Matt Schultz, CleanSpark’s chairman and CEO, emphasized the importance of the transaction. “This transformative $1.15 billion offering marks a defining moment in CleanSpark’s growth,” Schultz stated. He added that the repurchase of more than 10% of the company’s shares reinforces CleanSpark’s confidence in its long-term value creation strategy.

The company also highlighted its expansion efforts, including plans to move into AI-driven data center infrastructure. CleanSpark recently acquired rights to 271 acres of land in Austin County, Texas, to support this growth. The firm is positioning itself as a leader in energy and infrastructure for cryptocurrency mining.

Crypto Companies Secure Funds Through Convertible Notes

CleanSpark’s MOVE comes as part of a growing trend among cryptocurrency companies to raise funds through convertible debt. Last month, TeraWulf raised $1 billion through a similar zero-coupon convertible note offering. Galaxy Digital also revealed a $1.15 billion exchangeable notes offering, showing a shift in how these companies are securing capital for expansion.

Despite the success of the offering, CleanSpark’s stock has faced recent challenges. The stock closed down 10.13% at $11.98 on Thursday. Over the past month, the shares have dropped 40.2%, reflecting broader market pressures on the company’s stock performance.