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

CleanSpark, a Bitcoin mining company, has secured a second $100 million credit line without diluting shares, facilitated by Two Prime. This brings CleanSpark’s total borrowing capacity to $400 million, enhancing its plans for data center expansion and increased Bitcoin hashrate capacity. The new credit line is entirely backed by CleanSpark’s Bitcoin treasury, which consists of nearly 13,000 BTC, allowing the company to gain liquidity while maintaining shareholder value. This deal follows an earlier agreement with Coinbase Prime, also secured against Bitcoin reserves. The non-dilutive financing approach reflects a growing trend in which Bitcoin serves as collateral in traditional finance, allowing miners like CleanSpark to access capital without selling their holdings. The trend enables miners to manage their treasury more efficiently and avoid triggering capital gains taxes when borrowing against their Bitcoin reserves. Such arrangements provide miners with a cost-effective way to raise capital and leverage their BTC assets for future growth, amidst rising demand for Bitcoin-backed loans in the industry.

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