Nasdaq-listed Bitcoin mining company CleanSpark is raising funds to expand its mining and data center operations as major miners pivot to artificial intelligence (AI) infrastructure.
CleanSpark on Tuesday announced a $1.15 billion senior convertible debt offering to raise further capital to expand its Bitcoin (BTC) mining operations.
Miner estimates it could raise approximately $1.13 billion in net proceeds, or $1.28 billion if the initial purchaser fully exercises its option to purchase additional convertible notes. The offering is expected to close on November 13, subject to satisfactory closing conditions.
Cleanspark said it will use $460 million of the proceeds to repurchase common stock from investors, and the remaining proceeds will be used to expand its power and land portfolio, develop data center infrastructure, repay outstanding Bitcoin-backed credit balances, and cover general corporate expenses.
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CleanSpark announced it will buy back common stock from convertible note investors in a “private transaction” at the company’s stock price of $15.03, or Monday’s Nasdaq closing price.
The common stock offering comes nearly a year after CleanSpark raised $550 million in a similar private convertible debt offering, which closed on December 17, 2024, Cointelegraph reported at the time.
CleanSpark is the second-largest Bitcoin mining company in the world after Marathon Holdings, with an operating hash rate of 46.60 exahash per second (EH/s), according to data from Bitcoinminingstock.io.
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Bitcoin mining companies are expanding into AI data center infrastructure to diversify revenue streams
Some of the largest Bitcoin mining companies are expanding into AI data infrastructure to diversify their revenue streams, partly due to pressure after the Bitcoin halving.
CleanSpark stock soared 13% within a day when the Bitcoin miner first announced its AI enhancements on October 20, Cointelegraph reported.
“We are reviewing our entire portfolio from first principles to assess AI suitability and have identified Georgia as a strategic region for both transformation and expansion potential,” said Scott Garrison, chief development officer and executive vice president at ClearSpark.
In early November, Bitcoin mining company IREN signed a five-year deal worth $9.7 billion to provide Microsoft with access to Nvidia GPUs hosted within IREN’s data centers, further highlighting the industry’s growing synergies with AI.
In early June, Core Scientific announced a $3.5 billion agreement with AI cloud provider CoreWeave to provide an additional 200 megawatts of infrastructure to host CoreWeave’s high performance computing (HPC) operations. The deal is expected to generate more than $3.5 billion in revenue for the Bitcoin miner over the 12-year term of the contract.
The AI expansion may have saved Core Scientific’s business, as it originally filed for Chapter 11 bankruptcy in 2022, two years before relisting on the Nasdaq ahead of its AI pivot.
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