Bitcoin mining firm CleanSpark (CLSK) has secured a brand new $100 million credit score facility with Coinbase Prime, giving it entry to contemporary capital with out promoting its bitcoin holdings or elevating fairness.
The shares rose almost 6% in post-market buying and selling, after the announcement on Monday.
The mining firm will use the proceeds for strategic capital expenditures, together with increasing CleanSpark’s vitality portfolio, scaling its bitcoin mining operations, and investing in high-performance computing (HPC) capabilities, the corporate mentioned in a press launch.
Fairly than promoting bitcoin to lift money or promoting extra shares of the agency—a transfer that may dilute the present shareholders—CleanSpark is utilizing the asset as collateral to continue to grow whereas holding on to what it mines.
“Delivering accretive development utilizing non-dilutive financing is on the core of CleanSpark’s capital technique,” mentioned Gary A. Vecchiarelli, CleanSpark’s CFO. “Our ‘Infrastructure First’ technique has been confirmed traditionally and can additional improve shareholder worth as we broaden into extra diversified compute alternatives.”
The brand new elevate comes after current management adjustments hinted on the miner going past simply mining bitcoin and diversifying into different income alternatives. The concentrate on HPC is not stunning, as increasingly more bitcoin miners are pivoting into internet hosting machines that cater to HPC and synthetic intelligence computing, which requires an incredible quantity of vitality, of their knowledge facilities.
Learn extra: GPU Gold Rush: Why Bitcoin Miners Are Powering AI’s Growth
