2024

Bitcoin

Bitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock.
CleanSpark initially <a href="http://edgar.secdatabase.com/162/119312524003460/d83199dex51.htm" target="_blank" rel="noopener nofollow">inked</a> a deal for a $500 million ATM offering with New York investment banking firm H.C. Wainwright &amp; Co on Jan. 5, 2024, where CleanSpark said it may, from time to time, offer and sell shares of its common stock at $0.001 per share, a March 28 SEC filing <a href="https://www.sec.gov/Archives/edgar/data/827876/000119312524080832/d793236d424b5.htm" target="_blank" rel="noopener nofollow">reveals.</a>
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 CleanSpark’s at the market agreement with H.C. Wainwright &amp; Co. LLC. Source: <a href="https://www.sec.gov/Archives/edgar/data/827876/000119312524080832/d793236d424b5.htm" target="_blank" rel="noopener nofollow">SEC</a>
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Primary stock dilution is a common strategy for publicly-listed companies to raise additional capital.
CleanSpark isn’t the only Bitcoin miner to enter into an ATM agreement for this reason either — with <a href="https://www.sec.gov/Archives/edgar/data/1167419/000155837023018317/riot-20231107xex99d1.htm" target="_blank" rel="noopener nofollow">Riot</a> Platforms and <a href="https://www.sec.gov/Archives/edgar/data/1507605/000149315223038113/forms-3asr.htm" target="_blank" rel="noopener nofollow">Marathon</a> Digital Holdings, both entering into $750 million ATM agreements last August and October.
With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%.
CLSK started the trading day at $23.20 but is now down 16% to $19.1 in after-hours — which included an 8.2% fall during trading hours, <a href="https://www.google.com/finance/quote/CLSK:NASDAQ" target="_blank" rel="noopener nofollow">according</a> to Google Finance.
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 <img src="https://s3.cointelegraph.com/uploads/2024-03/049740f1-44c5-40d7-8778-eca4cf65cf2b.png">
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 CleanSpark’s change in stock price over the last trading day. Source: Google Finance
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Despite the stock plunge, CLSK is up 95% in 2024 and 685% over the last 12 months.
Related: <a href="https://cointelegraph.com/news/bitcoin-btc-halving-could-move-mining-out-united-states">Bitcoin halving ‘blood bath’ could push US miners offshore</a>
CleanSpark is one of many Bitcoin miners preparing for the <a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter">upcoming Bitcoin halving event,</a> expected to occur on April 20, which will see Bitcoin mining rewards reduced from 6.25 BTC ($441,000) to 3.125 BTC ($220,500).
The firm boasts the <a href="https://cointelegraph.com/news/riot-terawulf-cleanspark-miners-bitcoin-halving-coinshares">lowest cost production</a> to mine one Bitcoin post-halving at $26,900, a Jan. 12 CoinShares research report found.
On Feb. 6, Cleanspark said it expects its <a href="https://cointelegraph.com/news/cleanspark-to-double-hash-rate-bitcoin-halving-approaches">hash rate to double</a> in the first half of 2024 on the back of a recent agreement to purchase four new mining facilities in Mississippi, worth $19.8 million, which produced an immediate 2.4 exahashes per second (EH/s) for the firm.
It also agreed to buy an additional mining facility in Dalton, Georgia, for $6.9 million, which will produce 0.8 EH/s. However, that facility is under construction and won’t be ready until April 2024.
Cointelegraph reached out to CleanSpark for comment but didn't receive a response by the time of publication.
Magazine:<a href="https://cointelegraph.com/magazine/crypto-substance-abuse-traders-trading/"> This is your brain on crypto — Substance abuse grows among crypto traders</a>

Bitcoin miner CleanSpark plunges 10% after $800M share offering

Cointelegraph

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