Bitcoin mining company CleanSpark agreed to buy fellow miner GRIID Infrastructure in an all-stock deal valued at $155 million to expand its operations from Georgia and Mississippi into neighbouring Tennessee.
CleanSpark said in a news release that it will assume all outstanding debt and other obligations of GRIID and provide it with a $5 million dollar working capital loan and a pay-down bridge loan of $50.9 million at the signing.
“This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we proudly achieved in Georgia over the past three years,” said CleanSpark CEO Zach Bradford. “That achievement was to build out over 400 megawatts of infrastructure backed by valuable, long-term power contracts.”
The two companies also entered into an exclusive hosting agreement for all available power, of which 20 MW was to be immediately allocated to CleanSpark.
GRIID operates Bitcoin mining data centres in various cities and towns throughout Tennessee that are serviced by the Tennessee Valley Authority, the largest and one of the most important US public power companies.
“I am incredibly excited for the opportunity for GRIID to join the CleanSpark team,” said Trey Kelly, GRIID’s CEO. “Together, we will achieve rapid growth in the Tennessee Valley.”
Power play
CleanSpark said it anticipates surpassing 100 MW in Tennessee by the end of this year and increasing that to 200 MW in 2025 before exceeding 400 MW in 2026.
The deal is expected to close in the third quarter; it was approved by both boards and is subject to GRIID shareholder approval.
CleanSpark said earlier that its net income for the quarter ended March 31 as Bitcoin rallied was $126.7 million, compared with a loss of $18.5 million in the year-earlier period.
