CleanSpark has announced a $155 million all-stock acquisition of GRIID Infrastructure, a move expected to significantly bolster its bitcoin mining operations.
CleanSpark, a bitcoin mining and energy technology firm, has announced the acquisition of peer company GRIID Infrastructure in an all-stock transaction valued at $155 million, as reported by CoinDesk. This move, approved by the boards of both companies, is expected to significantly bolster CleanSpark's operations, particularly in Tennessee.
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.
— CleanSpark Inc. (@CleanSpark_Inc) June 27, 2024
Under the definitive merger agreement, we will purchase all issued… pic.twitter.com/Pd5oXPq4zp
CleanSpark will take on all of GRIID's debts and other obligations, including a pay-down bridge loan of approximately $50.9 million. Additionally, a $5 million working capital loan will be provided to GRIID. The transaction will result in GRIID stockholders receiving shares of CleanSpark common stock based on an exchange ratio determined by the aggregate merger consideration and outstanding GRIID common stock.
Following the deal's announcement, GRIID's shares saw a steep decline of over 50%, while CleanSpark experienced a nearly 4% increase in its stock price.
"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," stated Zach Bradford, CEO of CleanSpark. He emphasized the company's goal to expand its infrastructure in Tennessee, with plans to exceed 100 megawatts (MW) capacity by the end of the year and potentially reaching over 400MW by 2026.
The merger comes amid a wave of consolidation in the bitcoin mining industry, with recent high-profile mergers and acquisitions. The rise in deal-making follows the bitcoin halving event, which has increased the pressure on miners to optimize operations and reduce costs.
GRIID, founded in 2018, has established a presence in the bitcoin mining sector with operations in various locations across Tennessee. The company prioritizes a community-first approach to its data centers and is serviced by the Tennessee Valley Authority.
The transaction is set to close in the third quarter of 2024, subject to GRIID shareholder approval and other customary closing conditions. CleanSpark anticipates that the acquisition will enhance its capacity to support America's technological advancement, with its total announced, planned, and owned capacity reaching over 1 gigawatt of infrastructure.
