On Tuesday, the bitcoin mining and energy technology firm
Cleanspark announced that it has secured $35 million in non-dilutive
financing from Trinity Capital. According to the company, Cleanspark
aims to leverage the funds for growth capital expenditures.
Cleanspark to Bolster Growth Expenditures With $35 Million in Financing From Trinity Capital
Cleanspark has revealed it has finalized a $35 million finance deal
with the venture debt financing provider Trinity Capital in order to
fuel the company’s growth. The financing deal follows Cleanspark’s
recent Texas expansion
in March, as the company announced plans to expand operations in the
Lone Star state with 500 megawatts (MW) of renewable power.
According to Cleanspark, the three-year financing deal with Trinity
Capital is “backed by 3,336 new S19j Pro miners and carries an annual
interest rate of 9.9%.” “As we mentioned in our Q1 earnings call, debt
capital is currently the lowest cost of capital available to the
company,” Gary Vecchiarelli, CFO of Cleanspark, said in a statement. The
Cleanspark executive added:
This non-dilutive facility is an example of us delivering
on our capital strategy and the expectations we have previously
communicated. We intend to continue our efforts of obtaining
non-dilutive capital to finance our growth capex needs. It is worth
noting that we have not drawn on our ATM since November.
Financing to Fuel Expansions and Operations While Maximizing Returns for Shareholders
Cleanspark considers itself a sustainability-focused bitcoin mining
company and the “financing is intended to strengthen Cleanspark’s
sustainable business.” The firm will convert some bitcoin (BTC)
holdings in order to fund expansions and operations “with a goal of
limiting shareholder dilution and stably maximizing returns for
shareholders.”
During the last year, Cleanspark has been acquiring miners and making a number of business moves including starting a 20 MW immersion cooling initiative
last December. Ryan Little, the managing director of equipment
financing at Trinity Capital, explained during the announcement that the
company looks forward to working with Cleanspark.
“We are excited to partner with the team at Cleanspark, which is on a
mission to mine bitcoin responsibly, using a mix of sustainable energy
including nuclear, hydroelectric, solar, and wind,” Little remarked.
“Cleanspark is an excellent addition to our portfolio and recently
earned a spot among the top 50 fastest-growing companies on a Financial
Times list. We look forward to being a part of their growth story.”
source link : https://news.bitcoin.com/bitcoin-miner-cleanspark-secures-35-million-in-financing-from-trinity-capital/
