Bitcoin Mining Firm CleanSpark Acquires GRIID in $155M Stock Deal

2024-06-27 22:10:17

Tanzeel Akhtar

Last updated:

June 28, 2024, 02:10 EDT | 1 min read

Bitcoin miner CleanSpark Inc. has officially entered into a merger agreement with GRIID Infrastructure Inc., acquiring GRIID in an all-stock transaction valued at $155 million.

The merger is expected to improve CleanSpark’s capabilities through an exclusive hosting agreement available through GRIID.

As part of the agreement, 20 megawatts will be allocated to CleanSpark immediately, increasing its operational capacity. GRIID operates an R&D centre in Texas and an equipment repair centre in Tennessee.

The deal is expected to close in the third quarter of 2024, said CleanSpark in a statement.

We’ve announced an agreement to acquire @griid based on an enterprise value of $155 million and expansion plans of over 400 MW in Tennessee. $CLSK expects to add over 400 MW in the state over the next two years.

Under the definitive merger agreement, we will purchase all issued… pic.twitter.com/Pd5oXPq4zp

— CleanSpark Inc. (@CleanSpark_Inc) June 27, 2024

“This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we proudly achieved in Georgia over the past three years,” said Zach Bradford, CleanSpark’s CEO.

“That achievement was to build out over 400 MW of infrastructure backed by valuable, long-term power contracts,” adds Bradford.

CleanSpark Acquires Mining Facilities in Georgia

CleanSpark has been busy making multiple acquisitions this year. Earlier this month, CleanSpark acquired five new turnkey Bitcoin mining facilities in rural Georgia. The $25.8 million cash deal will enhance CleanSpark’s infrastructure, adding 60 megawatts of capacity and increasing the company’s operating hash rate.

CleanSpark also announced a major infrastructure deal to capitalize on Bitcoin’s rising prices: it purchased 60,000 Bitmain S21 miners for $193.2 million at the start of the year.

In February, CleanSpark also announced the acquisition of four new mining facilities—three in Mississippi and one in Dalton, Georgia.

In its latest merger agreement by integrating GRIID’s assets, CleanSpark aims to scale its operations and improve efficiency, a critical factor in the ever-evolving and highly competitive bitcoin mining industry.

The hosting agreement is effective immediately and gives CleanSpark the necessary infrastructure to support its expanded operations, highlighting the importance of reliable and scalable energy solutions in crypto mining.

The merger occurs against a backdrop of dynamic shifts in the Bitcoin landscape. In 2024, the crypto sector has continued to gain momentum and attract investment from the broader financial community.

As the crypto industry continues to mature, similar mergers and consolidations are likely to become more common, driven by the need for enhanced operational efficiency and competitive advantage.

BTC3,96%

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