Shares of CleanSpark Inc. rose on Monday, building on last week’s positive momentum after the company revealed an expanded Bitcoin-backed credit facility with Coinbase Prime.
The mining firm based in Las Vegas finished regular trading at $13.74 but surged over 8% in after-hours trading, reaching $14.86 following the announcement. The stock is currently up 6% in after-hours, with trading around $14.60.
CleanSpark secured an additional $100 million in credit, collateralized by its Bitcoin reserves. Instead of liquidating coins in the market, the company is utilizing its Bitcoin holdings as collateral, effectively turning mined Bitcoin into a functional asset.
For shareholders, this approach allows for growth funding without the necessity of issuing new stock, offering a non-dilutive path for continued scaling.
CleanSpark is Utilizing Its Bitcoin as Corporate Collateral
CleanSpark has increasingly accessed its Bitcoin holdings to raise funds. This strategy is becoming more prevalent among publicly traded miners.
Essentially, by using its Bitcoin as collateral, companies can maintain exposure to the asset’s potential while unlocking funds for operational use.
“This expansion with Coinbase Prime enables us to finance growth without forfeiting shareholder equity or liquidating Bitcoin,” stated CEO and Chairman Matt Schultz. “We perceive significant opportunities to accelerate mining growth while also preparing selected data centers for high-performance computing applications.”
Proceeds will be allocated towards initiatives like enhancing its energy portfolio, expanding Bitcoin mining operations, and developing high-performance computing capabilities.
This includes transforming certain facilities near urban centers into diversified computing campuses, where demand for AI and cloud services is rapidly increasing. This strategy is gaining momentum as competition intensifies among U.S.-based miners. CleanSpark, in particular, has focused on energy expansion and efficiency to maintain its competitive edge.
The company has also indicated a readiness to explore other computing avenues beyond mining, demonstrating flexibility as the industry evolves.
Brett Tejpaul, head of Coinbase Institutional, referred to CleanSpark’s capital strategy as “a significant advancement for growing the crypto ecosystem through targeted capital deployment.”
He emphasized Coinbase Prime’s vital role in providing the custody and credit infrastructure necessary for the deal.
According to market data, CleanSpark’s stock has risen 33% over the last five trading days.
