Bitcoin Miner CleanSpark to Buy Peer GRIID in $155M Deal

The acquisition will be all-stock based and has been approved by the boards of both companies.

AccessTimeIconJun 27, 2024 at 2:20 p.m. UTC
Updated Jun 27, 2024 at 2:23 p.m. UTC
  • CleanSpark will buy GRIID Infrastructure in an all-stock deal with total enterprise value of $155 million.
  • GRIID shares tumbled more than 50% on the news, while CLSK rose nearly 4%.
  • The deal has been approved by both the boards and expected to be closed by third quarter.
  • Profit-Making Crypto Address Makes New Investment of $16M in BTC
    00:59
    Profit-Making Crypto Address Makes New Investment of $16M in BTC
  • Could the Upcoming Bitcoin Conference Move Markets?
    00:34
    Could the Upcoming Bitcoin Conference Move Markets?
  • How Grayscale's 2.5% Fees Could Impact Investor Interest
    11:27
    How Grayscale's 2.5% Fees Could Impact Investor Interest
  • WazirX Hacked for $230M; Mark Cuban, Vitalik Buterin Speak Up on Crypto and Politics
    02:02
    WazirX Hacked for $230M; Mark Cuban, Vitalik Buterin Speak Up on Crypto and Politics
  • Bitcoin mining deal-making continues to ramp up, as CleanSpark (CLSK) has agreed to buy peer GRIID Infrastructure (GRDI) in an all-stock deal valued at $155M.

    The purchase will see CleanSpark assuming all debt and other obligations of GRIID and provide a $5 million loan as a pay-down bridge loan of approximately $50.9 million, according to a statement on Thursday.

    "This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we proudly achieved in Georgia over the past three years," said CleanSpark's CEO Zach Bradford. "That achievement was to build out over 400 MW of infrastructure backed by valuable, long-term power contracts."

    Shares of GRIID slumped more than 50% following the announcement, while CleanSpark's rose nearly 4%, implying traders are likely seeing the deal as a fire sale.

    The news comes as bitcoin mining mergers and acquisitions (M&A) have been heating up following the recent halving event which made the already competitive industry even more so. Recently, Riot Platforms (RIOT) and Bitfarms (BITF) have been battling it out in a hostile takeover attempt, while Core Scientific (CORZ) is also in play to be acquired by a cloud computing company.

    This deal is expected to close in the third quarter, and CleanSpark anticipates exceeding 100MW capacity in Tennessee by year-end and eventually grow that to 200MW next year and more than 400MW in 2026, according to the statement.

    The companies have also entered in to a hosting agreement where 20 megawatt (MW) worth of power capacity will be allocated to CleanSpark.

    GRIID was founded in 2018 and listed on the Nasdaq earlier this year after several delays due to the brutal crypto winter. The miner currently has mining facilities in Watertown, New York; Limestone, Maynardville and Lenoir City, Tennessee.

    Edited by Stephen Alpher.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets