LAS VEGAS - CleanSpark , Inc. (NASDAQ: NASDAQ:CLSK), a company specializing in sustainable bitcoin mining, has announced the completion of its acquisition of GRIID Infrastructure Inc. (NASDAQ: GRDI) as of Wednesday, following approval from GRIID's shareholders on Monday. This strategic move is expected to expand CleanSpark's bitcoin mining capacity to over 400 megawatts (MW) in Tennessee.
The acquisition, which was initially made public on June 27, 2024, has resulted in each share of GRIID common stock being converted into approximately 0.06959 of a share of CleanSpark common stock. In light of the merger, GRIID requested the suspension of trading of its common stock and public warrants on Nasdaq prior to market opening today, with a planned delisting from the Cboe Canada by the end of the day.
CleanSpark's CEO, Zach Bradford, expressed enthusiasm about the acquisition, highlighting the opportunity to grow their mining capacity and the benefits of geographic and power supply diversity in the Tennessee Valley Authority's service area. Bradford also noted the smooth integration of GRIID's team and the complementary nature of their workforce with CleanSpark's existing operations.
Senator Bill Hagerty of Tennessee welcomed CleanSpark, citing the state's conducive business environment and burgeoning Bitcoin industry. Trey Kelly, GRIID's former CEO, also commented on the merger's positive impact on GRIID's shareholders and employees and the potential for added value to the combined company.
The legal counsel for the transaction was provided by Cozen O'Connor P.C. for CleanSpark and Troutman Pepper Hamilton Sanders LLP for GRIID.
CleanSpark, recognized as America's Bitcoin Miner®, operates multiple data centers primarily powered by low-carbon energy sources, supporting the Bitcoin network. The company emphasizes trust and transparency in its operations and community engagement.
This announcement is based on a press release statement, and it contains forward-looking statements regarding the anticipated benefits of the acquisition. These forward-looking statements involve risks and uncertainties, and actual results may differ from those projected. CleanSpark has outlined these risks in its filings with the SEC, including potential integration challenges, litigation risks, and the impact of external factors such as economic conditions and regulatory changes.
In other recent news, CleanSpark, Inc. has made several significant advancements. The financial services company reported a record-breaking Q2 revenue for fiscal year 2024 of $111.8 million. This growth was supported by strategic acquisitions and a fleet upgrade that improved efficiency by nearly 20%. CleanSpark also announced the termination of its mining services agreement with Coinmint, indicating a strategic shift in operations.
On the acquisition front, the company added seven Bitcoin mining facilities in Tennessee to its portfolio. Despite disruptions from Hurricane Helene, CleanSpark promptly resumed operations, maintaining an operational hashrate of 28.7 EH/s. The company's stockholders also approved an increase in the number of authorized shares of common stock from 300 million to 600 million, providing CleanSpark with the flexibility for future corporate endeavors.
In response to these developments, analysts at Macquarie upgraded CleanSpark's stock to an Outperform rating. Other firms such as H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings. Furthermore, CleanSpark promoted Brian Carson to the position of Chief Accounting Officer, bolstering its financial management. These are the recent developments in CleanSpark's operations and strategic direction.
InvestingPro Insights
CleanSpark's acquisition of GRIID Infrastructure Inc. aligns with the company's strong growth trajectory, as evidenced by recent InvestingPro data. The company's revenue growth of 140.89% over the last twelve months and 128.69% in the most recent quarter underscores its rapid expansion in the bitcoin mining sector. This growth is particularly relevant given the anticipated increase in mining capacity to over 400 MW in Tennessee following the GRIID acquisition.
InvestingPro Tips highlight that CleanSpark's net income is expected to grow this year, and analysts anticipate sales growth in the current year. These projections support the company's strategic decision to expand through acquisition. Additionally, the tip indicating that CleanSpark operates with a moderate level of debt suggests that the company may be well-positioned to manage the financial aspects of this merger.
The company's strong financial position is further emphasized by the InvestingPro Tip noting that liquid assets exceed short-term obligations, which could be crucial for smooth integration and operational expansion post-acquisition.
It's worth noting that CleanSpark's stock has shown significant volatility, with a strong return of 194.15% over the last year, despite a 24.62% decline in the past three months. This volatility aligns with the nature of the bitcoin mining industry and may reflect investor reactions to both company-specific news and broader cryptocurrency market trends.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for CleanSpark, providing deeper insights into the company's financial health and market position.
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