TL;DR
- CleanSpark expanded its zero-coupon convertible bond issuance to $1.15 billion, maturing in 2032, after stronger-than-expected investor demand.
- The company will allocate $460 million for share buybacks and use the remaining funds to expand its energy capacity, acquire land, and develop new data centers linked to bitcoin mining and AI.
- CleanSpark’s shares dropped 5% in pre-market trading, reaching $14 per share.
CleanSpark raised its zero-coupon convertible bond issuance to $1.15 billion, maturing in 2032, after receiving higher-than-expected demand.
The company will use $460 million to repurchase shares at $15.03 each and allocate the rest to expanding its energy capacity, acquiring land, developing new data centers, and repaying bitcoin-backed credit lines.
The operation is part of a broader wave of convertible debt issuances reshaping financing across the sector. Bitcoin miners and AI-focused infrastructure companies are increasingly turning to this form of debt to secure capital without immediate dilution while maintaining exposure to their respective growth markets.
Convergence Between Energy, Bitcoin Mining, and Artificial Intelligence
The bonds carry a 27.5% conversion premium and could increase by an additional $150 million if purchasers exercise their full option. The offering is expected to close on November 13.
CleanSpark is following the same strategy recently adopted by TeraWulf and Galaxy Digital, which also tapped the convertible market to fund expansion projects tied to bitcoin mining and high-density data centers. These transactions reflect the growing convergence between energy infrastructure, bitcoin mining, and computing services for artificial intelligence.
CleanSpark Shares Fall Amid Hedging Activity
CleanSpark’s shares fell 5% in pre-market trading, hovering around $14 per share. The decline is attributed to delta-hedging strategies by the banks involved in the placement, a common technical adjustment in this type of operation.
The company is strengthening its position in a market that increasingly demands energy and computing capacity for workloads related to AI and blockchain. CleanSpark aims to build a hybrid model in which its data centers support both bitcoin mining and high-performance computing applications, aligning its revenue with the parallel growth of both industries.
