CleanSpark, a Bitcoin mining firm, saw a 5% increase in after-hours trading following its announcement on Monday regarding a $100M financing agreement with institutional investor-focused Coinbase Prime.
The new deal provides CleanSpark with additional credit from Coinbase Prime by leveraging a fraction of its 13,000 Bitcoin (BTC) holdings as collateral. The company plans to use the funds to expand its Bitcoin mining operations, high-performance computing (HPC) capabilities, and energy portfolio.
As of September 22, CleanSpark (CLSK) shares closed at $13.74, and after the announcement, the price rose roughly 5% to reach $14.44 in after-hours trading.
CleanSpark’s Expansion in Bitcoin Mining and Computing
In recent years, several prominent Bitcoin mining companies have shifted their focus to AI.
When asked about CleanSpark’s emphasis on expanding its HPC and energy ventures compared to Bitcoin mining, Chief Business Officer Harry Sudock remarked to Cointelegraph that the company does not approach it in such a binary manner.
“We don’t really think about it as a ratio across our portfolio. Our goal is to maximize the value of each asset. This will begin with a thorough review of every power contract, plot of land, and energy relationship we currently have,” he stated.
Sudock pointed out that flexibility is crucial for CleanSpark, asserting that this strategy will position the company to thrive and compete effectively in the future.
“Certain parts of our power pipeline may not align well with Bitcoin mining but could be incredibly beneficial for high-performance computing. As we enhance both capabilities within our skill set, we’re poised for significant growth in our power portfolio, beyond what one capability alone could provide.”
“Versatility fosters opportunity maximization,” Sudock added.
CleanSpark Continues with Bitcoin-Backed Financing
Thus far, CleanSpark has secured approximately $300 million in BTC-backed financing from Coinbase Prime as part of its strategic alliance.
Sudock mentioned that the company is focused on extracting maximum value from its Bitcoin to benefit investors and scale operations.
“We’re maintaining close to 13,000 Bitcoin on our books, and we aim to put that Bitcoin to work for us and our shareholders,” he stated.
However, Sudock stressed that this strategy involves only a designated portion of the BTC holdings, not the entirety.
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The company’s latest initiative follows its best quarter to date, having reported a record $198.6 million in revenue for Q3.
This revenue growth coincided with the company mining a total of 657 BTC in August, representing a 37.5% year-over-year increase compared to August 2024.
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