Bitcoin Miner CleanSpark to Buy Peer GRIID Infrastructure in $155M Deal

The acquisition will be all-stock based and has been approved by the boards of both companies.

Bitcoin miner CleanSpark (NASDAQ:CLSK) has agreed to acquire peer GRIID Infrastructure (NASDAQ:GRDI) in an all-stock deal valued at $155 million.

The purchase will see CleanSpark assuming all debt and other obligations of GRIID and will also provide a $5 million loan as a pay-down bridge loan of approximately $50.9 million, the companies said in a statement on Thursday.

Shares of GRIID slumped more than 50% following the announcement, while CleanSpark’s rose nearly 4%, implying traders are likely seeing the deal as a fire sale.

The news comes as bitcoin mining mergers and acquisitions have been heating up following the recent halving event, which has made the already competitive industry even more so.

Recently, Riot Platforms (NASDAQ:RIOT) and Bitfarms (NASDAQ:BITF) have been battling it out in a hostile takeover attempt, while Core Scientific (NASDAQ:CORZ) is also in play to be acquired by a cloud computing company.

This deal is expected to close in the third quarter, and CleanSpark anticipates exceeding 100MW capacity in Tennessee by year-end and will eventually grow that to 200MW next year and more than 400MW in 2026, the statement said.

The companies have also entered into a hosting agreement where 20 megawatt (MW) worth of power 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.

Read more: Bitcoin mining sector is attracting growing investor interest following Core Scientific deal: JPMorgan

The above is the detailed content of Bitcoin Miner CleanSpark to Buy Peer GRIID Infrastructure in $155M Deal. For more information, please follow other related articles on the PHP Chinese website!