Cleanspark Raising $550M In Convertible Notes To Buy Bitcoin?

Cleanspark Raising $550 Million In Convertible Notes; Buying Bitcoin?

Cleanspark To Buy Bitcoin? $550 Million To be Raised In Convertible Notes

Cleanspark is a Bitcoin miner, raising funds through private issuance of Senior Notes. Market now has an eye on the move that’s been used by competitors earlier to buy Bitcoin. 

Cleanspark, a tech firm, is raising $550 million in Convertible Senior Notes offering. The notes are priced at 0% and are to be available to only qualified investors. The notes will mature in 2030.

The firm seems to be planning to offer the notes to initial purchasers for resale in a private offering as securities. The initial price will be $24.66/share of the company’s common stock. The amount represents a 100% premium to the stock’s closing price as of December 12, 2024.     

Cleanspark may allow up to a 13-day option to repurchase up to $100M aggregate principal amount of the notes. The firm may raise up to $633.6 million if investors exercise this extended repurchase option. 

Cleanspark Not To Buy Bitcoin Via Fundraise?

Fundraising through convertible notes is quite common among the US firms, however, unlike others, Cleanspark doesn't seem to be doing this for the purpose of buying additional BTC, despite being a Bitcoin mining firm.

It has declared that the firm will designate $145 million to repurchase shares from investors participating in the notes sales. Additionally, it will aim to settle its line of credit with Coinbase exchange by deploying some of the funds. Remaining capital is to go to capital expenditures, acquisitions and general corporate requirements.

US Firms Made Similar Moves 

Unlike Cleanspark, Bitcoin mining firms like Riot Platforms also raised funds via issuance of convertible senior notes, though Riot Platforms chose to buy 5,113 Bitcoin for $510M through the proceeds on December 13. A similar move has been made in the past by MARA Holdings, displaying the common thesis that BTC miners are adopting Bitcoin beyond daily mining operations.

Seems like the firms are following Michael Saylor’s MicroStrategy (MSTR) Bitcoin playbook. MSTR is known to have grown its BTC stash to 423,650 units post the latest 21,550 BTC purchase for $2.1B. MSTR is now on its way to enter Nasdaq 100. However, Cleanspark’s refusal to allocating any amount to Bitcoin remains unclear.