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

Bitcoin miner CleanSpark announced an upsized convertible notes offering of $1.15 billion, an increase from the initial $1 billion. The company plans to use approximately $460 million from the offering to buy back its own stock at a price of $15.03 per share from note investors. Following these announcements, CleanSpark's stock fell for a second consecutive day, dropping nearly 8% on the day and extending a five-day decline of approximately 14%. The remaining funds from the notes will support the expansion of CleanSpark's power and land portfolio, as well as develop data center infrastructure and repay credit lines. The convertible notes will mature on February 15, 2032, with a conversion rate set at a premium of 27.5% over Monday's closing price. Meanwhile, Bitcoin's market experienced a minor rally due to speculation about the end of a prolonged U.S. government shutdown, which is expected to enhance liquidity in the market. Other Bitcoin mining companies, such as Riot Platforms and Cipher Mining, also saw declines alongside CleanSpark's performance.

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