Bitcoin miner CleanSpark down after pricing $550 mln convertible offering
2024-12-13
Category: None

** Shares of CleanSpark CLSK down 3% to $11.96 before the bell as bitcoin miner secures capital raise
** Las Vegas-based firm announces pricing private offering of $550 mln 0% convertible bonds (CBs) due Jun 2030
** Initial conversion price of $14.80 represents 20% premium to stock's last close 
** Co plans to use ~$76.5 mln of net proceeds to pay for capped calls, and up to $145 mln to repurchase its common stock from CBs purchasers
** Remaining proceeds to be used to fully repay amounts outstanding under its line of credit with crypto exchange Coinbase COIN, co says
** CLSK has $3.6 bln market cap, per LSEG data
** Through Thurs, its shares have gained 17% since the Nov 5 election, as bitcoin BTCUSD has soared to record highs on expectations of friendlier regulatory environment for cryptocurrencies under President-elect Donald Trump
                                                                                        ** Bitcoin, which has gained >30% since Nov 5, up fractionally on Fri and hovering around $100,000                                                                        
                                                                                        ** CLSK joins a string of bitcoin miners                   issuing convertible securities recently                  , including Riot Platforms RIOT,                   Mara                   Holdings MARA, and                   Core Scientific                   CORZ, taking advantage of tailwind in their stock prices                                                                        