CleanSpark, a Bitcoin mining company, has announced plans to acquire GRIID Infrastructure in an all-stock deal valued at $155 million. This acquisition will allow CleanSpark to expand its operations into Tennessee, in addition to its current locations in Georgia and Mississippi. The deal has been approved by both boards and is expected to close in the third quarter.
As part of the agreement, CleanSpark will take on all outstanding debt and obligations of GRIID. Additionally, CleanSpark will provide GRIID with a $5 million working capital loan and a pay-down bridge loan of $50.9 million at the signing of the deal.
CleanSpark’s CEO, Zach Bradford, expressed excitement about the acquisition, stating that it will provide a clear path for the company to replicate its success in Georgia in Tennessee. The companies have also entered into an exclusive hosting agreement, with 20 MW of power immediately allocated to CleanSpark.
GRIID currently operates Bitcoin mining data centers throughout Tennessee, serviced by the Tennessee Valley Authority. The CEO of GRIID, Trey Kelly, is optimistic about the growth opportunities that joining CleanSpark will bring, particularly in the Tennessee Valley.
CleanSpark anticipates exceeding 100 MW of power in Tennessee by the end of this year, with plans to increase to 200 MW in 2025 and surpass 400 MW in 2026. The deal is pending approval from GRIID shareholders and is expected to close in the third quarter.
CleanSpark reported a net income of $126.7 million for the quarter ended March 31, attributed to the rise in Bitcoin prices. This marks a significant turnaround from a loss of $18.5 million in the same period last year.