PANews reported on December 18 that CleanSpark has completed the issuance of $650 million zero-coupon convertible bonds (due in 2030), with net proceeds of approximately $633.6 million. These convertible bonds are offered to qualified institutional investors, including $100 million of bonds fully exercised under the initial underwriter's over-allotment option. In this issuance, CleanSpark signed a cap repurchase agreement with multiple parties, setting the conversion price cap at $24.66 per share (a 100% premium over the closing price of $12.33 on December 12) to reduce potential equity dilution. Additionally, CleanSpark spent $145 million to repurchase 11.76 million shares of common stock to further optimize the shareholder equity structure.
The funds will be used to repay the Coinbase credit line, capital expenditures, potential acquisitions, and general corporate purposes. CEO Zach Bradford stated that this financing not only ensures CleanSpark's expansion to a hash rate target of 50 EH/s but also supports its strategic initiatives in expanding mining operations and asset acquisitions, while enhancing the company's financial flexibility and shareholder value.