PANews reported on December 18 that according to CleanSpark's announcement, the company has completed the issuance of $650 million zero-interest convertible bonds (due in 2030), with net proceeds of approximately $633.6 million. This convertible bond is aimed at qualified institutional investors, and the issuance includes $100 million in bonds with the initial underwriters fully exercising their right to purchase additional bonds. In this issuance, CleanSpark signed a capped repurchase agreement with multiple parties, setting the upper limit of the conversion price at $24.66 per share (a 100% premium to the closing price of $12.33 on December 12) to reduce potential equity dilution. In addition, CleanSpark spent $145 million to repurchase 11.76 million shares of common stock to further optimize the shareholder equity structure.
The funds raised will be used to repay Coinbase's credit line, capital expenditures, potential acquisitions, and general corporate purposes. Zach Bradford, the company's CEO, said that this financing will not only ensure CleanSpark's expansion to 50 EH/s computing power, but will also support its strategic initiatives in expanding its mining business and asset acquisitions, while enhancing the company's financial flexibility and shareholder value.
