CleanSpark (CLSK) recently made headlines with the acquisition of GRIID Infrastructure, a move that solidifies its position as one of the largest publicly traded Bitcoin mining firms. The all-stock deal, valued at $155 million, immediately adds 20 megawatts (MW) of power to CleanSpark’s mining operations, with plans to increase that to 400 MW in Tennessee within the next two years.
As part of the merger agreement, CleanSpark took on all of GRIID’s debts and obligations, while also providing a $5 million working capital loan and paying off a $50.9 million bridge loan. CleanSpark’s CEO, Zach Bradford, expressed confidence in the acquisition, stating that it provides a clear path for the company to replicate its success in Georgia by building out over 400 MW of infrastructure with long-term power contracts.
Following the announcement, GRIID’s shares dropped more than 50%, while CleanSpark’s shares rose by 4%, indicating a positive reception from traders. CleanSpark closed at $16.05 per share on Thursday, giving the company a market cap of $3.6 billion and positioning it as one of the top-performing mining stocks this year.
This acquisition is part of a trend in the mining industry, with other firms like Riot Platforms and Bitfarms engaging in acquisition talks. Riot has been pursuing a hostile takeover of Bitfarms, while Core Scientific is considering a $1 billion buyout offer from CoreWeave, which has seen its shares rise significantly since the offer was made.
Overall, CleanSpark’s acquisition of GRIID Infrastructure marks a significant milestone for the company and highlights the ongoing consolidation and growth within the Bitcoin mining sector.