CleanSpark, a leading Bitcoin mining company, has announced that it will acquire GRIID Infrastructure in an all-stock transaction valued at $155 million . This strategic move will allow CleanSpark to expand its operations from Georgia and Mississippi into the lucrative Tennessee market.
Under the terms of the deal, CleanSpark will purchase all of GRIID's issued and outstanding stock. In addition to the $155 million enterprise value, CleanSpark will assume GRIID's outstanding debt and other obligations, and will also provide GRIID with a $5 million working capital loan and a $50.9 million pay-down bridge loan.
The acquisition is expected to close in the third quarter of 2024, pending approval from GRIID's shareholders. Once the deal is finalized, GRIID stockholders will receive shares of CleanSpark common stock based on an exchange ratio.
The key driver behind this acquisition is CleanSpark's desire to establish a strong presence in Tennessee, where GRIID currently operates several Bitcoin mining data centers. CleanSpark's CEO, Zach Bradford, stated that the acquisition will give the company "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".
Specifically, CleanSpark aims to build out over 400 MW of infrastructure in Tennessee, backed by valuable, long-term power contracts. The company expects to exceed 100 MW of capacity in Tennessee by the end of 2024, and then grow that to 200 MW in 2025 and over 400 MW in 2026.
The deal also includes an exclusive hosting agreement, which will immediately allocate 20 MW of power capacity to CleanSpark . This will provide the company with a solid foundation to rapidly scale its operations in the region.
The acquisition is seen as a strategic move by CleanSpark to consolidate its position in the highly competitive Bitcoin mining industry. The recent Bitcoin halving event has made the industry even more competitive, leading to a wave of mergers and acquisitions (M&A) in the sector.
Analysts believe that the deal is a "fire sale" for GRIID, as the company's shares tumbled more than 50% following the announcement, while CleanSpark's stock rose nearly 4% . This suggests that investors view the acquisition as a favorable move for CleanSpark, allowing the company to expand its footprint and gain a competitive edge in the market.
Overall, the acquisition of GRIID Infrastructure by Bitcoin miner CleanSpark represents a significant step forward in the company's growth strategy. By expanding into the Tennessee market, CleanSpark aims to solidify its position as a leading player in the rapidly evolving Bitcoin mining industry.
Latest comments (1)
Let the consolidations begin…