CleanSpark Inc. (CLSK) has announced a strategic acquisition of GRIID Infrastructure (GRDI) in an all-stock transaction valued at $155 million. This significant move underscores CleanSpark’s ambition to bolster its Bitcoin mining capabilities and infrastructure.
The boards of directors for both companies have unanimously approved the deal, which includes the assumption of GRIID’s existing debt. Under the agreement, GRIID shareholders will receive CleanSpark common stock, with the exchange ratio reflecting the aggregate merger consideration. CleanSpark has pegged its common stock at a valuation of $16.587 per share, slightly above its current trading price of $16.35.
JUST IN: Cleanspark will acquire bitcoin miner GRIID for $155 million, with plans to expand over 400 MW in Tennessee.
Under the merger agreement, CleanSpark will purchase all GRIID common stock in an all-stock transaction, with GRIID stockholders receiving CleanSpark shares. pic.twitter.com/lorYyNdVcj
— Bitcoin News (@BitcoinNewsCom) June 27, 2024
In addition to assuming GRIID’s liabilities, CleanSpark is providing a $5 million working capital loan and a $50.9 million bridge loan to facilitate the transition. These loans are secured and prioritized over GRIID’s other debts. The merger is expected to close by the third quarter of 2024, pending GRIID shareholder approval and other customary conditions.
The announcement has triggered contrasting market reactions; GRIID shares plummeted over 50%, while CleanSpark’s stock saw a modest increase of nearly 4%. This acquisition will immediately allocate 20 megawatts (MW) of power to CleanSpark, further enhancing its operational capacity.
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
Zach Bradford, CEO of CleanSpark, expressed optimism about the merger’s potential. “This acquisition provides a clear and steady path to replicate our success in Georgia in Tennessee, aiming to exceed 100 MW by the end of 2024 and reaching over 400 MW by 2026,” Bradford stated.
GRIID, a vertically integrated Bitcoin mining firm, operates data centers across Tennessee and other states. The company’s stock, which experienced a volatile week, is currently trading at $1.20 per share after the acquisition news.
This deal is part of a broader trend in the Bitcoin mining industry, where mergers and acquisitions are intensifying post-halving. The CleanSpark-GRIID merger is set to reshape the competitive landscape, promising substantial growth and enhanced infrastructure in the coming years.
