News
Bitcoin (BTC) Miner CleanSpark (CLSK) to Buy Peer Griid (GRDI) for $155 Million Enterprise Value
Bitcoin mining deals continue to surge, as CleanSpark (CLSK) has agreed to purchase peer company GRIID Infrastructure (GRDI) in an all-stock deal valued at $155 million.
The purchase will see CleanSpark assume all of GRIID’s debt and other obligations and provide a $5 million loan as a bridge loan of approximately $50.9 million, according to a declaration on Thursday.
“This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we have proudly accomplished in Georgia over the past three years,” said Zach Bradford, CEO of CleanSpark. “This achievement has been to build over 400 MW of infrastructure supported by valuable long-term energy contracts.”
GRIID shares plunged more than 50% after the announcement, while CleanSpark shares rose nearly 4%, suggesting traders likely view the deal as a fire sale.
The news comes as bitcoin mining mergers and acquisitions (M&A) are heating up following the recent halving that has made the already competitive sector even more competitive. Riot Platforms (RIOT) and Bitfarms (BITF) were recently launched. fighting it in a hostile takeover attempt, while Core Scientific (CORZ) is also in play acquired from a cloud computing company.
The deal is expected to close in the third quarter, and CleanSpark plans to exceed 100 MW of capacity in Tennessee by the end of the year and then increase to 200 MW next year and more than 400 MW in 2026, according to the statement.
The companies also entered into a hosting agreement in which 20 megawatts (MW) of energy capacity will be allocated to CleanSpark.
GRIID was founded in 2018 and listed on the Nasdaq earlier this year, after several delays due to the brutal crypto winter. The miner currently has mining facilities in Watertown, New York; Limestone, Maynardville; and Lenoir City, Tennessee.