CleanSpark Announces Convertible Bond Offering

CleanSpark (NASDAQ: CLSK), a Bitcoin mining company, is trading nearly 3% lower at $11.96 prior to market opening today. The Las Vegas-headquartered firm has announced the pricing of a private offering of $550 million in convertible bonds (CBs) with a 0% interest rate, maturing in June 2030.

The initial conversion price for these bonds is set at $14.80, representing a 20% premium over the stock's last closing price. CleanSpark intends to allocate approximately $76.5 million of the net proceeds to fund capped call transactions. Additionally, the company plans to use up to $145 million for the repurchase of its common stock directly from the purchasers of the CBs.

The remaining proceeds from this offering are slated to fully repay the amounts outstanding under its line of credit with the cryptocurrency exchange Coinbase (NASDAQ: COIN), according to the company's announcement.

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