Bitcoin Miner CleanSpark Extends Stock Slump After Upsizing Notes Offering to $1.15 Billion

CleanSpark, a Bitcoin mining company, has increased its convertible notes offering from $1 billion to $1.15 billion, leading to a continued decline in its stock price. After initially announcing the offering, which includes a potential additional $150 million in shares, CleanSpark's stock, CLSK, fell nearly 8%, extending its losses over five days to about 14%. The company plans to use approximately $460 million of the proceeds to repurchase its common stock at $15.03 per share from note investors. The remaining funds will be allocated to expanding its power and land assets, developing data center infrastructure, and general corporate purposes. The notes are convertible into cash or stock, carrying an initial conversion rate of 52.1832 shares per $1,000 note, which is at a 27.5% premium over the last closing price. The convertible notes due on February 15, 2032, do not pay regular interest and have a conversion restriction until August 2023. This financial maneuver reflects ongoing market pressures faced by CleanSpark and the wider Bitcoin mining sector.

Source 🔗