CleanSpark secures second BTC-backed credit line this week without share dilution

CleanSpark, a Bitcoin mining company, has secured its second $100 million credit line this week, bringing its total borrowing capacity to $400 million. This new facility, arranged with Two Prime and backed by CleanSpark's Bitcoin treasury, allows the company to avoid share dilution while enhancing its liquidity. CleanSpark holds nearly 13,000 BTC on its balance sheet and aims to use this financing to expand its data centers and increase Bitcoin hashrate capacity. The non-dilutive nature of this financial arrangement is significant as it preserves shareholder value, contrasting typical public company practices that involve equity offerings. This development follows a similar credit line agreement made earlier in the week with Coinbase Prime, also collateralized by Bitcoin reserves. The trend of utilizing Bitcoin as collateral for loans is emerging among miners who wish to maintain exposure to Bitcoin's potential upside while managing their treasury more efficiently.

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