CleanSpark, a company specializing in Bitcoin mining, has recently made a significant acquisition. They have agreed to purchase GRIID Infrastructure in a deal valued at $155 million, which will be paid entirely in stock. This move has caused GRIID’s shares to plummet by more than 50%, while CleanSpark’s shares have seen a nearly 4% increase in value.
The acquisition has been approved by both companies’ boards and is expected to be finalized by the third quarter. As part of the deal, CleanSpark will be taking on all of GRIID’s debt and other financial obligations. Additionally, CleanSpark will provide a $5 million loan to help pay down approximately $50.9 million in debt.
CleanSpark’s CEO, Zach Bradford, expressed excitement about the acquisition, stating that it will provide the company with a clear path to expand their operations in Tennessee. He also highlighted CleanSpark’s successful track record in Georgia, where they have built over 400 MW of infrastructure supported by long-term power contracts.
The announcement of the acquisition comes at a time when Bitcoin mining mergers and acquisitions are on the rise. The recent halving event has intensified competition in the industry, leading to increased deal-making activities. Other companies, such as Riot Platforms and Bitfarms, have also been engaged in takeover attempts, adding to the overall dynamic nature of the market.
Looking ahead, CleanSpark aims to surpass 100MW capacity in Tennessee by the end of the year. They plan to further expand this capacity to 200MW in the following year and exceed 400MW by 2026. The companies have also entered into a hosting agreement, allocating 20MW of power capacity to CleanSpark.
GRIID Infrastructure, founded in 2018, has mining facilities in various locations, including Watertown, New York, and several sites in Tennessee. The company recently went public on the Nasdaq after facing delays due to challenging market conditions in the past.
Overall, the acquisition of GRIID Infrastructure by CleanSpark represents a significant development in the Bitcoin mining industry. It demonstrates the ongoing consolidation and expansion efforts within the sector, as companies seek to strengthen their positions and capitalize on the growing demand for cryptocurrency mining services.