CleanSpark, a Bitcoin mining company, has announced its plans to acquire GRIID Infrastructure for $155 million in an effort to expand its operations and overcome the challenges currently facing the mining industry. This acquisition comes at a time when many miners are struggling to maintain profitability due to recent events impacting their revenues.
As part of the agreement, CleanSpark will take on all of GRIID’s existing debt and obligations. The company has also provided GRIID with a $5 million working capital loan and a bridge loan of approximately $50.9 million to cover certain obligations at the time of signing.
CleanSpark’s CEO, Zach Bradford, expressed his optimism about the acquisition, stating that it would allow the company to replicate its success in Georgia in Tennessee over the next few years. He aims to exceed 100 megawatts in Tennessee by the end of this year, grow to 200 megawatts in 2025, and ultimately surpass 400 megawatts in 2026.
The Boards of Directors of both companies have unanimously approved the transaction, which is expected to close in the third quarter of 2024 pending approval from GRIID shareholders and meeting other closing conditions. Once the deal is finalized, GRIID shareholders will receive CleanSpark common stock based on an exchange ratio determined by the total merger consideration and the number of GRIID common shares outstanding at the time of closing.
Established in 2018, GRIID began mining operations in 2019 and currently operates four mining facilities in New York and Tennessee. The company also has Research and Development and Equipment Repair Centers in Texas and Tennessee, respectively.
Following the announcement of the acquisition, GRIID’s shares dropped by around 50%, while CleanSpark’s shares rose by nearly 4%. This move represents a significant strategic shift for both companies as they navigate the evolving landscape of the mining industry and work towards sustainable growth and profitability in the future.
