CleanSpark acquired GRIID in a $155M stock transaction

Bitcoin (BTC) miner CleanSpark has announced a merger with GRIID Infrastructure in a $155 million transaction.

Pursuant to an announcement on June 27, CleanSpark acquired all of the issued and outstanding shares of GRIID in an all-stock transaction. Pursuant to the agreement, CleanSpark will assume all of GRIID's liabilities. It also includes an exclusive hosting agreement, allocating 20 MW of power to CleanSpark.

In addition, CleanSpark provided a $5-million working capital loan to GRIID, along with $50.9 million to settle immediate obligations. The deal is expected to add more than 400 MW of power to CleanSpark over the next few years.

“We expect this will allow us to have more than 100 megawatts in Tennessee by the end of this calendar year and eventually grow to 200 megawatts by 2025,” said CleanSpark CEO Zach Bradford. “Every step of the way, we will continue to work together with local communities as we build the infrastructure to power up to one gigawatt of data center operations in Tennessee.”

Shares of CleanSpark, which trades under the symbol CLSK, rose 2.2 percent to $16.44 on June 27, marking a more than 50 percent year-to-date gain.

In the year As of February 2024, GRIID operated two mining facilities in East Tennessee with a co-located facility in New York. The sites have 68 megawatts of mining capacity, most of which is located in Tennessee. Earlier this year, the company announced plans to extract nearly 150MW of its mining capacity in the Tennessee Valley. GRIID is headquartered in Cincinnati, Ohio.

Data center acquisitions

Bitcoin (BTC) miners have been expanding their portfolio of data centers in recent months. For example, Marathon Digital acquired two operating locations from Generate Capital in December, allowing the company to double its revenue in two years.

Earlier this month, CleanSpark announced additional acquisitions — five mining facilities in Georgia — adding a combined 60 megawatts of power to its operations. In March, the company announced in a filing with the Securities and Exchange Commission that it plans to sell up to $800 million in shares and raise additional capital.

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