CleanSpark (CLSK) announced the upsize and pricing of its offering of $1.15 billion aggregate principal amount of 0.00% convertible senior notes due 2032. The convertible notes will be sold to the initial purchasers for resale in a private offering.
The key elements of the transaction include the $1.15 billion 0.00% Convertible Senior Notes offering (27.50% conversion premium) and the repurchase of approximately $460 million of the common stock from investors in the convertible notes.
The initial purchasers have an option to purchase up to an additional $150 million convertible notes.
The net proceeds will be approximately $1.13 billion (or approximately $1.28 billion if the initial purchasers exercise in full their option).
The company intends to use approximately $460 million to repurchase shares and the remaining net proceeds for the expansion of the company’s power and land portfolio, the development of data center infrastructure, the repayment of outstanding bitcoin-backed line of credit balances, and general corporate purposes.
The stock price traded 4.5% lower on Monday during after-market hours of trading.
