Home > web3.0 > CleanSpark Completes Merger with GRIID Infrastructure, Promises 400+ MW of Power Capacity Expansion

CleanSpark Completes Merger with GRIID Infrastructure, Promises 400+ MW of Power Capacity Expansion

WBOY
Release: 2024-06-29 00:07:53
Original
1198 people have browsed it

The transaction involves CleanSpark acquiring all issued and outstanding common stock of GRIID through an all-stock agreement.

CleanSpark Completes Merger with GRIID Infrastructure, Promises 400+ MW of Power Capacity Expansion

Bitcoin (BTC) miner CleanSpark has completed its merger with GRIID Infrastructure (GRDI) in a deal valued at $155 million, adding to a string of recent acquisitions in the cryptocurrency mining sector.

Announced on June 27, the transaction saw CleanSpark acquire all the issued and outstanding common stock of GRIID through an all-stock agreement.

As part of the arrangement, CleanSpark will also assume all of GRIID’s existing debt and enter into an exclusive hosting agreement, providing 20 megawatts of power to the combined entity.

In a move to further support GRIID’s integration and expansion, CleanSpark has also provided a $5 million working capital loan and an additional $50.9 million to settle GRIID’s immediate financial commitments.

This merger is set to significantly boost CleanSpark’s operational capacity, with plans to add over 400 MW of power over the next few years.

Commenting on the potential to scale the company’s operations, Zach Bradford, CEO of CleanSpark, said:

“This merger will rapidly expand our operational capacity, enabling us to scale our Tennessee facilities to 100 megawatts by the end of this calendar year, 200 megawatts by 2025, and 400+ megawatts by 2026.”

“At every step of the way we will continue to work together with local communities as we build infrastructure capable of powering as much as one gigawatt of data center operations in Tennessee, to support the digital economy and energy transition.”

The merger announcement was met with positive反応 in the financial markets, with CleanSpark’s stock, trading under the symbol CLSK, rising 2.2% to $16.44 on the day of the news, bringing its year-to-date gain to over 50%.

Prior to the merger, GRIID operated two mining facilities in East Tennessee and a co-located site in New York, boasting a total mining capacity of 68 MW, with the majority located in Tennessee.

Headquartered in Cincinnati, Ohio, GRIID had already set out plans earlier this year to increase its mining capacity in the Tennessee Valley to nearly 150 MW.

Commenting on the expansion, Trey Kelly, CEO of GRIID, said:

“We’re focused on building our growth and expanding our capacity by moving sites like this from our power pipeline to production. We’re especially pleased to be expanding our footprint in the Tennessee Valley, where the Tennessee Valley Authority’s (TVA) mix of affordable, reliable, and low-carbon electricity has made this area an excellent long-term location to mine bitcoin.”

Local government officials have also shown support for GRIID’s expansion, with Tony Aikens, Mayor of Lenoir City, praising GRIID for its positive impact on the community.

“Bitcoin has been a net benefit for the city and for our state, generating tax receipts and good jobs,” said Aikens. “We look forward to GRIID being our neighbors for many years to come.”

This trend of consolidation and expansion is not unique to CleanSpark and GRIID, as the broader Bitcoin mining industry continues to evolve.

Another major player in the space, Marathon Digital, increased its operational capacity by acquiring two mining sites from Generate Capital in December, which is expected to double its hashrate within two years.

Additionally, earlier this month, CleanSpark itself expanded its portfolio by acquiring five mining facilities in Georgia, adding 60 MW of power to its operations.

In a bold move to secure further capital for expansion, CleanSpark disclosed its intention to sell up to $800 million of its stock in a March Securities and Exchange Commission filing.

Established in 2018, GRIID Infrastruktur (GRDI) went public on the Nasdaq earlier in 2024, following a period of postponed plans due to challenging market conditions in the cryptocurrency sector.

This flurry of activity highlights a period of aggressive growth and strategic realignment in the Bitcoin mining industry, with companies like CleanSpark and GRIID positioning themselves to capitalize on the evolving digital currency landscape.

The above is the detailed content of CleanSpark Completes Merger with GRIID Infrastructure, Promises 400+ MW of Power Capacity Expansion. For more information, please follow other related articles on the PHP Chinese website!

source:kdj.com
Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Popular Tutorials
More>
Latest Downloads
More>
Web Effects
Website Source Code
Website Materials
Front End Template