What’s Going On With Shares Of Bitcoin Miner CleanSpark Tuesday? – Cleanspark (NASDAQ:CLSK)

CleanSpark Inc CLSK shares are creeping higher in Tuesday’s after-hours session after the Bitcoin BTC/USD miner announced the closing of its convertible notes offering and provided an update on financing.

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What Happened: After the market close on Tuesday, CleanSpark said it completed its previously announced offering of $650 million worth of 0.00% convertible senior notes due 2030.

The aggregate amount sold includes an additional $100 million sold to the initial purchasers after the purchasers exercised in full their option to purchase additional convertible notes.

In connection with the offering, CleanSpark entered into capped call transactions with various counterparties at a “cap price” of $24.66 per share. The capped calls are expected to reduce the potential dilution of the company’s common stock upon any conversion of the notes.

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In addition to the offering, CleanSpark announced that it repurchased 11.76 million shares of its common stock for $145 million.

“We are proud to have closed this offering with some of the strongest institutional investors in the world and are excited to share that our growth through 50 EH/s and beyond is now expected to be more than fully funded from the proceeds,” said Zach Bradford, president and CEO of CleanSpark.

“In addition to funding the growth to 50 EH/s, share buyback, and capped call, the additional capital will allow us to keep adding the bitcoin we mine to our balance sheet.”

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CleanSpark held a total of 9,297 Bitcoin as of Nov. 30. The company mined 622 Bitcoin in November and sold approximately 26 coins last month.

Net proceeds from the offering totaled approximately $633.6 million. The company used $90.4 million of the proceeds for the capped call transactions and approximately $145 million to repurchase shares. CleanSpark said the remaining proceeds will be used to repay the company’s line of credit with Coinbase, as well as for capital expenditures, potential acquisitions and general corporate purposes.

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“Importantly, this offering provides our stockholders greater clarity on near-term share count, given our ATM offering was completed in early November, and we have no immediate plans to commence another equity or equity-linked offering, as the capital received from this offering sufficiently covers our near-term strategic objectives,” Bradford said.

CLSK Price Action: CleanSpark shares were up 0.48% in after-hours, trading at $12.42 at the time of publication Tuesday, according to Benzinga Pro.

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