Bitcoin miner Cleanspark is raising funds via private Senior Notes issuance, following a strategy rivals have used to acquire Bitcoin.
Cleanspark, a Bitcoin mining and technology company, has declared its plan to issue Convertible Senior Notes to raise $550 million.
The company disclosed that it is pricing the notes at zero percent and will only offer them to eligible investors.
The Convertible Senior Notes will mature in 2030, according to Cleanspark.
Plans For Cleanspark Do Not Include Bitcoin
Cleanspark, a Bitcoin mining and technology company, said that the notes will be made available to the original buyers for resale as securities in a private offering.
According to the firm, the notes’ initial price will be limited to $24.66 per share of the company’s common stock.
According to the petition, this sum is a 100% premium over the stock’s closing price on December 12, 2024.
In addition, Cleanspark said that it could permit a 13-day option to buy back up to $100 million in the notes’ total principal.
Up to $633.6 million can be raised by the Bitcoin mining company if investors take advantage of this extended repurchase option.
Although US companies frequently obtain money through convertible notes, the goal of this funding is distinct.
Cleanspark will not utilize the funds to purchase more Bitcoin, even if it is a Bitcoin mining company.
Rather, it said that it would set aside $145 million to buy back shares from investors who take part in the offering of the notes.
Cleanspark also stated that the company will use a portion of the money to pay off its line of credit with the Coinbase exchange.
The remaining funds will be used for acquisitions, capital expenditures, and other business needs.
Strange Development Regarding Bitcoin Mining Companies
Other Bitcoin mining companies, such as Riot Platforms, have raised money by selling convertible senior notes, in contrast to Cleanspark.
In contrast to the former, Riot Platforms earlier on December 13 used the money to purchase 5,113 Bitcoin for $510 million.
This action was previously taken by MARA Holdings as well, supporting the idea that Bitcoin miners are embracing the cryptocurrency outside of their regular mining activities.
These businesses are taking a cue from MicroStrategy’s Bitcoin strategy.
As previously reported, following its most recent acquisition of 21,550 Bitcoin for $2.1 billion, MicroStrategy has increased its holdings to 423,650 units.
This company hopes that the coin’s value will keep rising about the US dollar.
MicroStrategy’s performance with its treasury reserve puts it on pace to be included in the Nasdaq-100 Index.
The larger ecosystem is still baffled as to why Cleanspark declined to invest any money in Bitcoin.