Bitcoin mining company CleanSpark has announced a definitive merger agreement to acquire GRIID Infrastructure Inc. (Nasdaq: GRDI, in an all-stock deal worth $155 million.
Projected to be completed in the third quarter of the year 2024, this acquisition comes at the backdrop of the company’s strategic expansion in the Bitcoin mining business, for instance, the procurement of Bitmain S21 miners besides five turnkey mining sites
Bitcoin Mining Company CleanSpark to Acquire GRIID
As part of the agreement, CleanSpark will take over all the issued and outstanding common stock of GRIID, thus incorporating GRIID’s present debt and asset profile into CleanSpark’s. This comprises a key hosting agreement that enables CleanSpark to get an instant control of 20 MW of power. Under the deal’s financial arrangement, CleanSpark will issue its common stock to the GRIID stockholders depending on the exchange ratio that was set before the prevailing market conditions.
CleanSpark’s CEO, Zach Bradford, was positive about the strategic aspects of the merger, noting that the acquisition will help CleanSpark achieve its growth plans while GRIID has operational assets.
Bradford added,
“This integration does not only serve to expand the operational reach of the company but it also amplifies our advocacy on the importance of environment friendly mining.”
In addition to supporting the integration, CleanSpark has provided a $5 million working capital loan and a $50. 9 million bridge loan to GRIID.
Enhancing Mining Capabilities with Bitmain S21 Miners
CleanSpark has recently announced that it has entered into a deal to buy up to 160,000 Bitmain S21 miners to support its growth plan effectively. This major upgrade is anticipated to increase CleanSpark’s hashrate in the business of cryptocurrency mining to make it more competitive. The acquisition of the 60,000 units initially will add an estimated 12 EH/s to its hashing power with possibilities of buying more before the end of the year.
Parallel to the GRIID acquisition, the firm has also signed deals to purchase five turnkey sites in Georgia. These sites with a capacity of 8MW – 15MW in total, 60MW is a part of the company’s strategy to achieve an operational hashrate of more than 20 EH/s in the middle of this year. The addition of these sites enhances CleanSpark’s mining activities and helps maintain grid reliability and community relations.
Additionally, the company has ambitious plans in Tennessee, aiming to exceed 100 megawatts of capacity by the end of this year, reach 200 megawatts by 2025, and surpass 400 megawatts by 2026.
Read Also: Bitcoin Miner CleanSpark To Acquire 5 Mining Sites Despite Ongoing Capitulation
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