Nasdaq-listed Bitcoin mining company CleanSpark announced a $1.15 billion senior convertible note offering on Tuesday to fund the expansion of its mining operations and data center infrastructure.
The miner estimates net proceeds of approximately $1.13 billion, potentially reaching $1.28 billion if initial purchasers exercise their full options to purchase additional convertible notes. The offering is expected to close on November 13, subject to satisfactory closing conditions.
This capital raise comes almost a year after CleanSpark secured $550 million through a similar private convertible note offering that closed on December 17, 2024. The company continues to position itself for growth in both Bitcoin mining and artificial intelligence infrastructure sectors.
Allocation of Funds and Strategic Repurchases
CleanSpark will allocate $460 million of the proceeds to repurchase common stock from investors through privately negotiated transactions at $15.03 per share, matching the Nasdaq closing price on Monday. The remaining funds will support the expansion of the company's power and land portfolio, the development of data center infrastructure, the repayment of outstanding Bitcoin-backed credit balances, and general corporate expenses.
CleanSpark's Market Position and Operational Scale
CleanSpark operates as the world's second-largest Bitcoin mining firm after Marathon Holdings, with an operating hashrate of 46.60 exahashes per second, according to data from Bitcoinminingstock.io. The company maintains significant computing power dedicated to securing the Bitcoin network.
Strategic Expansion into AI Data Centers
"We have been reviewing the entire portfolio from first principles to evaluate AI suitability and have identified Georgia as a strategic region for both potential conversion as well as expansion," said Scott Garrison, chief development officer and executive vice president at CleanSpark.
The expansion into AI data center infrastructure reflects a broader industry trend among major Bitcoin mining companies seeking diversified revenue streams. Post-halving pressure has driven miners to explore alternative income sources beyond traditional block rewards and transaction fees.
CleanSpark's shares surged 13% within a day when the company first announced its AI expansion on October 20. The market response demonstrated investor enthusiasm for mining companies pivoting toward high-performance computing and artificial intelligence applications.
Industry Trends in AI Infrastructure for Miners
Bitcoin mining company IREN signed a five-year agreement valued at $9.7 billion with Microsoft in early November to provide access to Nvidia GPUs hosted within IREN's data centers.
Core Scientific announced a $3.5 billion deal with AI cloud provider CoreWeave in June to provide 200 megawatts of infrastructure for high-performance computing operations.