Fintech
Bitcoin miner CleanSpark to buy GRIID in $155 million all-stock deal – DL News
- CleanSpark plans to expand into Tennessee through acquisition.
- The deal has been approved by both boards of directors and is expected to close in the third quarter.
Bitcoin mining company CleanSpark has agreed to buy fellow miner GRIID Infrastructure in an all-stock deal worth $155 million to expand its operations from Georgia and Mississippi to neighboring Tennessee.
CleanSpark said in a Press release which will assume all of GRIID’s outstanding debt and other obligations and provide it with a $5 million working capital loan and $50.9 million bridge loan upon signing.
“This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we have proudly accomplished in Georgia over the past three years,” said CleanSpark CEO Zach Bradford. “That achievement was to build over 400 megawatts of infrastructure supported by valuable long-term energy contracts.”
The two companies also entered into an exclusive hosting agreement for all available power, of which 20 MW would be immediately allocated to CleanSpark.
GRIID operates Bitcoin mining data centers in various cities and towns across Tennessee, served by the Tennessee Valley Authority, the largest and one of the most important public electric utilities in the United States.
“I am incredibly excited about the opportunity for GRIID to join the CleanSpark team,” said Trey Kelly, CEO of GRIID. “Together, we will achieve rapid growth in the Tennessee Valley.”
Power play
CleanSpark said it expects to exceed 100 MW in Tennessee by the end of the year and increase that to 200 MW in 2025, before exceeding 400 MW in 2026.
The deal is expected to close in the third quarter and has been approved by both boards of directors and is subject to approval by GRIID shareholders.
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CleanSpark She said Previously, its net income for the quarter ended March 31, as Bitcoin rallied, was $126.7 million, compared to a loss of $18.5 million in the same period a year earlier.