Bitcoin mining firm CleanSpark revealed its intention to raise $1 billion through a privately placed offering of zero-coupon convertible senior notes to finance the company’s ongoing expansion. The Nasdaq-listed company said that the bonds due in 2032 will not carry a regular interest and may be converted into cash, shares, or a combination of both at its discretion.
The company said in a statement on Monday that the offering also allowed the initial purchasers to acquire up to an additional $200 million. Cantor Fitzgerald and BTIG, who have been appointed to oversee the sale, are expected to price it before the U.S. markets open on Tuesday, according to a Bloomberg report.
By its own admission, CleanSpark plans to set aside as much as $400 million of the proceeds for repurchasing its shares, a move that could help the company’s stock regain stability after the recent drop. The rest of the money will be spent on the power and land portfolio expansion, new data center infrastructure development, bitcoin-backed loan repayment, and other general corporate purposes.
The 0% convertible bonds maturing on February 15, 2032, will be senior unsecured liabilities and thus, in the event of liquidation, will provide investors with a claim to the company’s assets; however, unlike normal bonds, they will not carry the burden of regular interest payments. This method of financing has attracted a growing number of crypto-related companies seeking capital amid volatile equity markets.
Last month, CleanSpark announced its intention to expand into AI data center infrastructure, a diversification strategy that will balance the company’s bitcoin mining operations with the growth of AI computing. Additionally, the company purchased 271 acres of land in Austin County, Texas, for a new data center project.
On Monday, the company’s stock price decreased by 3.47% to $15.03. However, CleanSpark’s stock is still up 63% year-to-date, after a 22% decline in the last month, according to The Chainbull’s price data. The company’s fundraising effort is following the path of TeraWulf and Galaxy Digital, which have both recently raised more than $1 billion through convertible debt offerings. This move highlights a growing trend among crypto infrastructure companies that are looking for long-term funding through structured financial instruments.
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