Bitcoin Mining Company CleanSpark (CLSK) has secured a new $100 million credit facility with Coinbase Prime, providing access to fresh capital without selling Bitcoin Holdings or increasing capital.
Stocks rose nearly 6% in post-market trading after the announcement Monday.
Mining companies will use revenue for strategic capital expenditures, including expanding CleanSpark’s energy portfolio, scaling Bitcoin mining operations, and investing in high-performance computing (HPC) capabilities.
Rather than selling bitcoin to raise cash or selling additional stocks in the company, Cleanz Park, a move that could dilute current shareholders, uses assets as collateral to continue growing while retaining the mine.
“Providing supplementary growth using non-diluted funding is at the heart of Cleanspark’s capital strategy,” said Gary A. Vecchiarelli, CFO of Cleanspark. “Our ‘Infrastructure First’ strategy has been historically proven and will further strengthen shareholder value as it expands to more diverse computational opportunities. ”
New pay increases come after recent leadership changes suggest not only mining Bitcoin and diversifying into other revenue opportunities, but also mining miners. The focus on HPC is no surprise. This is because more and more Bitcoin miners are pivoting to hosting machines that support HPC and artificial intelligence computing, which require huge amounts of energy in their data centers.
Read more: GPU Gold Rush: Why Bitcoin Miner Powers AI Expansion