CleanSpark completes $1.15 billion convertible notes offering

CleanSpark Inc. (NASDAQ: CLSK) announced it completed a $1.15 billion offering of zero-coupon convertible senior notes due 2032. The notes were sold to initial purchasers for resale to qualified institutional buyers in a private offering under Rule 144A.

The company generated net proceeds of approximately $1.13 billion after deducting initial purchaser discounts and estimated expenses. CleanSpark used $460 million of the proceeds to repurchase 30.6 million shares of its common stock from investors in the offering, representing approximately 10.9% of currently outstanding shares.

"This transformative $1.15 billion offering marks a defining moment in CleanSpark's growth as a leading energy and infrastructure compute platform," said Matt Schultz, chairman and chief executive officer. The repurchased shares will be removed from the company's outstanding share count.

CleanSpark plans to use remaining proceeds for expanding its power and land portfolio, developing data center infrastructure, repaying outstanding bitcoin-backed line of credit balances, and general corporate purposes. None of the repurchased shares came from company directors and officers, who signed 45-day lock-up agreements in connection with the offering.

The convertible notes and any shares issuable upon conversion have not been registered under the Securities Act of 1933. CleanSpark operates as a bitcoin mining company and data center developer with a portfolio of more than 1.3 gigawatts of power, land, and data centers across the United States.

The information is based on a company press release statement.

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