Nasdaq-listed Bitcoin mining giant CleanSpark has announced plans to raise $1.15 billion through a senior convertible note offering to expand its Bitcoin mining capacity and accelerate its push into artificial intelligence (AI) infrastructure.
Key Takeaways:
CleanSpark is raising $1.15 billion through a convertible note offering to expand its Bitcoin mining and AI infrastructure operations. The company will allocate $460 million for a stock buyback and use the rest to grow its data center. The move reflects a wider industry pivot toward AI and high-performance computing.The company expects to generate about $1.13 billion in net proceeds, or up to $1.28 billion if underwriters fully exercise their options.
The offering is set to close on November 13, subject to standard closing conditions, CleanSpark said Tuesday.
CleanSpark to Use $460M for Stock Buyback
Of the proceeds, $460 million will go toward repurchasing common stock from investors, while the remainder will be used to expand the firm’s power and land portfolio, develop data center infrastructure, repay Bitcoin-backed loans, and cover general corporate costs.
CleanSpark said the stock repurchases will occur through privately negotiated transactions at $15.03 per share, matching Monday’s Nasdaq closing price.
The move comes roughly a year after the company raised $550 million in a similar private convertible note offering completed in December 2024.
According to Bitcoinminingstock.io, CleanSpark ranks as the world’s second-largest Bitcoin miner, boasting an operational hashrate of 46.6 exahashes per second (EH/s), trailing only Marathon Holdings.
The funding push aligns with a broader industry shift toward AI and high-performance computing (HPC).
Following April’s Bitcoin halving, which cut block rewards by half, miners have been exploring ways to repurpose excess energy and infrastructure for AI workloads to offset shrinking profit margins.
CleanSpark’s stock jumped 13% in late October after it announced its AI expansion strategy.
Chief development officer Scott Garrison said the company has identified Georgia as a “strategic region” for both potential conversion and future expansion.
The trend extends beyond CleanSpark. In recent months, IREN secured a $9.7 billion deal with Microsoft to host AI GPUs in its data centers, while Core Scientific signed a $3.5 billion agreement with CoreWeave to supply 200 megawatts of HPC infrastructure.
Once a struggling miner that filed for bankruptcy in 2022, Core Scientific has since revived its fortunes through its AI partnership, a shift that CleanSpark appears ready to mirror.
TeraWulf Q3 Revenue Surges 87% to $50.6M
As reported, Bitcoin miner TeraWulf posted a sharp rebound in the third quarter, nearly doubling its year-over-year revenue as the company benefited from Bitcoin’s price surge and growing exposure to artificial intelligence infrastructure.
The US-based company said total revenue rose 87% to $50.6 million, driven largely by higher Bitcoin prices and additional income from high-performance computing (HPC) leasing. Of that total, $43.4 million came from “digital asset revenue.”
Notably, Bitcoin miners are facing mounting pressure as profitability plunges to its lowest level in months, driven by rising power costs, declining Bitcoin prices, and reduced block rewards following April’s halving.
The key profitability metric, known as hash price, has dropped to around $42 per PH/s, nearing break-even levels that threaten smaller operations and squeeze industry margins.
The downturn has rippled across the supply chain, with hardware sales slowing and equipment manufacturers struggling as miners delay purchases or cancel orders.
Some firms, like Bitdeer, have turned to self-mining, while others are pivoting to AI and high-performance computing (HPC) to capitalize on stronger margins and steady demand.
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