CleanSpark (CLSK), a prominent Bitcoin mining company, made headlines recently with its acquisition of GRIID Infrastructure in a $155 million all-stock deal. This move immediately added 20 megawatts (MW) of power to CleanSpark’s mining operations, with plans to bring an additional 400 MW of power to Tennessee in the next two years.
The merger agreement required CleanSpark to take on all debts and obligations from GRIID, as well as provide a $5 million working capital loan and pay off a bridge loan of $50.9 million. CleanSpark’s CEO, Zach Bradford, expressed confidence in the acquisition, stating that it sets the company on a clear path for growth similar to what they achieved in Georgia.
Following the announcement, GRIID shares dropped by over 50%, while CLSK shares saw a 4% increase, indicating that investors may have perceived the deal as advantageous for CleanSpark. The company’s shares closed at $16.05 apiece, with a market cap of $3.6 billion.
This acquisition is part of a trend in the mining industry, with other companies like Riot Platforms (RIOT) and Bitfarms (BITF) also making moves in the market. RIOT attempted a hostile takeover of Bitfarms, but the offer was initially rejected. Bitfarms’ shares closed at $2.59, while RIOT shares are down 11% from last month.
Core Scientific (CORZ), another major player in the mining sector, is currently considering a $1 billion buyout offer from CoreWeave, a cloud computing company. Since the offer, CORZ shares have risen by 92% this month, showing the potential for growth in the industry.
Overall, the acquisition of GRIID Infrastructure by CleanSpark marks a significant development in the Bitcoin mining sector, with companies strategically positioning themselves for future growth and expansion. As the industry continues to evolve, we can expect more mergers and acquisitions to shape the competitive landscape of the market.