Bitcoin Miner CleanSpark to Acquire GRIID Infrastructure in $155M Deal
The bitcoin mining industry is witnessing a surge in mergers and acquisitions, with CleanSpark (CLSK) announcing its plans to acquire GRIID Infrastructure (GRDI) in an all-stock deal valued at $155 million. The acquisition, which has been approved by the boards of both companies, is expected to close in the third quarter.
Bitcoin mining facilities like this one are becoming increasingly important for companies like CleanSpark and GRIID.
The deal will see CleanSpark assume 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 CleanSpark’s CEO Zach Bradford, the acquisition will give the company a clear and steady path to accomplish in Tennessee what it achieved in Georgia over the past three years - building out over 400 MW of infrastructure backed by valuable, long-term power contracts.
“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.
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.
Mergers and acquisitions like this one are becoming increasingly common in the bitcoin mining industry.
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.
The companies have also entered into 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.
GRIID’s mining facilities, like this one, will soon be part of CleanSpark’s operations.
The acquisition is a significant development in the bitcoin mining industry, and one that is likely to have far-reaching implications for both CleanSpark and GRIID. As the industry continues to evolve, it will be interesting to see how this deal plays out and what it means for the future of bitcoin mining.
