CleanSpark Inc.’s stock surged following the announcement of a $100 million Bitcoin-backed credit facility with Coinbase Prime. The company’s stock rose 6% in after-hours trading, reaching $14.60, building on the previous week’s gains. CleanSpark closed regular trading at $13.74 but jumped to $14.86 post-announcement, reflecting investor optimism.
CleanSpark has tapped an additional $100 million in credit, using its Bitcoin holdings as collateral. This strategic move allows the company to access capital without liquidating Bitcoin or issuing new shares. CEO Matt Schultz stated,
The credit line reflects CleanSpark’s approach of using its Bitcoin reserves as an asset rather than selling them. This tactic provides a non-dilutive method of financing growth while maintaining exposure to Bitcoin’s potential upside. CleanSpark’s decision to rely on Bitcoin-backed credit shows the company’s growing confidence in the cryptocurrency’s long-term value.
The mining company plans to use the funds for several key initiatives, including expanding its energy portfolio and scaling Bitcoin mining operations. In addition, CleanSpark aims to develop high-performance computing capabilities by converting select facilities into diversified compute campuses. These campuses will target the increasing demand for AI and cloud services in metro areas.
CleanSpark is capitalizing on its Bitcoin reserves to enhance its mining capacity and energy efficiency. The company’s focus on energy innovation allows it to stay ahead in the competitive landscape of U.S.-based Bitcoin miners. With the expanded credit facility, CleanSpark can continue to scale its operations without diluting shareholder value.
The company’s flexibility is evident as it branches into high-performance computing beyond traditional Bitcoin mining. CleanSpark’s decision to diversify operations reflects its readiness to adapt to changing industry dynamics, positioning CleanSpark as a forward-thinking player in the cryptocurrency and computing sectors.
Brett Tejpaul, head of Coinbase Institutional, praised CleanSpark’s capital strategy, calling it “a significant step forward for growing the crypto ecosystem.” The credit facility from Coinbase Prime provides the necessary infrastructure for CleanSpark’s expansion.
CleanSpark’s stock has risen 33% over the last five trading days, a sign of investor confidence. With this new credit facility, CleanSpark aims to accelerate its growth while strengthening its position in the cryptocurrency and computing markets.
The post CleanSpark’s Stock Jumps 6% After Securing $100M Bitcoin Credit Line appeared first on Blockonomi.