CleanSpark, a leading Nasdaq-listed Bitcoin mining company, has announced a significant capital raise of $1.15 billion through a senior convertible note offering. This strategic move aims to expand its Bitcoin mining operations and data center infrastructure, aligning with a broader industry trend where major miners are increasingly pivoting towards artificial intelligence (AI) infrastructure.
The company anticipates net proceeds of approximately $1.13 billion, which could increase to $1.28 billion if initial purchasers fully exercise their options for additional notes. The offering is slated to close on November 13, subject to customary closing conditions.
A portion of the proceeds, specifically $460 million, will be utilized to repurchase common stock from investors in privately negotiated transactions at a share price of $15.03, matching Nasdaq’s closing price on Monday. The remaining capital will be strategically allocated to bolster CleanSpark’s power and land portfolio, develop crucial data center infrastructure, repay outstanding Bitcoin-backed credit balances, and cover general corporate expenses. This marks CleanSpark’s second major capital raise via convertible notes, following a $550 million offering that closed in December 2024.
CleanSpark currently stands as the world’s second-largest Bitcoin mining firm, trailing only Marathon Holdings, boasting an impressive operating hashrate of 46.60 exahashes per second (EH/s).
Bitcoin Miners Embrace AI Data Center Infrastructure
The landscape of Bitcoin mining is evolving, with several prominent firms diversifying their revenue streams by expanding into AI data infrastructure. This shift is partly driven by the pressures of post-Bitcoin halving economics. CleanSpark’s proactive move into AI was met with positive market reception, as its shares surged 13% on the day of its initial AI expansion announcement on October 20. Scott Garrison, Chief Development Officer and Executive Vice President at CleanSpark, highlighted Georgia as a strategic region for both potential conversion and expansion into AI suitability.
Other major players in the Bitcoin mining sector are also making significant strides in AI. Early November saw Bitcoin mining company IREN ink a substantial five-year, $9.7 billion agreement to provide Microsoft with access to Nvidia GPUs housed within IREN’s data centers. Similarly, Core Scientific, a company that re-emerged from Chapter 11 bankruptcy, secured a $3.5 billion deal with AI cloud provider CoreWeave in June. This partnership will provide an additional 200 megawatts of infrastructure for CoreWeave’s high-performance computing (HPC) operations, a deal projected to generate over $3.5 billion for Core Scientific over a 12-year contract period. This strategic pivot towards AI infrastructure has been instrumental in Core Scientific’s resurgence and successful relisting on the Nasdaq.
