Bitcoin miner CleanSpark falls 10% after $800M share offering
Bitcoin miner CleanSpark was down 10% in afternoon trading on Thursday.
CleanSpark initially signed a $500 million ATM supply agreement with New York investment banking firm HC Wainwright & Company on January 5, 2024. Share, March 28, 2010
Primary stock dilution is a common strategy for publicly listed companies to raise additional capital.
CleanSpark isn't the only Bitcoin miner to enter into an ATM deal as a result – along with Riot Platforms and Marathon Digital Holdings, both entered into $750 million ATM deals last August and October.
With a capitalization of $4.2 billion, the $800 million stock offering will dilute CLSK shares by 19 percent.
CLSK started the trading day at $23.20 but is now down 16% to $19.1 after hours – including an 8.2% drop during trading hours, according to Google Finance.
Despite the decline in stock, CLSK is up 95% in 2024 and 685% over the past 12 months.
Related: Bitcoin ‘bloodbath' halving could push US miners offshore
CleanSpark is one of several Bitcoin miners that will see 6.25 BTC ($441,000) down from 3.125 BTC ($220,500) expected to happen on April 20, in preparation for the upcoming Bitcoin Half event.
The company boasts the lowest cost yield to one Bitcoin post-halving price at $26,900, a January 12 CoinShares research report found.
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It also agreed to purchase an additional mining site in Dalton, Georgia, for $6.9 million, which will produce 0.8 EH/s. However, the facility is under construction and won't be ready until April 2024.
Cointelegraph reached out to CleanSpark for comment but did not receive a response by the time of publication.
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