Overview
- CleanSpark priced a private offering of senior unsecured convertible notes due February 15, 2032, carrying a 0% coupon and payable in cash, stock, or both at the company’s election.
- Approximately $460 million of net proceeds will fund repurchases of common stock at $15.03 per share through privately negotiated transactions.
- Remaining funds are earmarked to expand power and land holdings, develop high-performance computing and AI data center infrastructure, repay bitcoin-backed credit lines, and for general corporate purposes.
- The initial conversion rate is 52.1832 shares per $1,000 note (equivalent to $19.16 per share, about a 27.5% premium), with conversion restricted until August 15, 2031 except under specified conditions.
- Cantor Fitzgerald and BTIG are leading the transaction, which includes an option for initial purchasers to buy additional notes and is expected to close November 13; CleanSpark shares fell following the announcement, with dealers’ hedging cited as a factor.