Bitcoin
miner
CleanSpark
has
agreed
to
acquire
its
rival
GRIID
Infrastructure
for
$155
million,
according
to
a
June
27
statement.
The
companies
also
revealed
that
they
entered
an
exclusive
hosting
agreement
for
all
currently
available
power,
of
which
20
MW
will
be
allocated
to
CleanSpark
effective
immediately.
This
development
arrives
as
BTC
miners
significantly
struggle
following
the
recent
halving
event
that
impacted
their
earnings.
As
a
result,
several
miners
have
begun
efforts
to
diversify
their
revenue
streams
by
mining
altcoins
and
pivoting
towards
AI.
Acquisition
details
Under
this
deal,
CleanSpark
will
take
on
all
of
GRIID’s
existing
debt
and
obligations.
Additionally,
the
miner
has
provided
GRIID
with
a
$5
million
working
capital
loan
and
a
bridge
loan
of
about
$50.9
million
to
cover
certain
obligations
at
the
time
of
signing.
CleanSpark
CEO
Zach
Bradford
stated
that
this
acquisition
would
help
the
firm
replicate
its
success
in
Georgia
over
the
next
three
years
in
Tennessee.
He
commented:
“[This
acquisition]
will
enable
us
to
exceed
100
megawatts
in
Tennessee
by
the
end
of
this
year
and
grow
to
200
megawatts
in
2025,
eventually
surpassing
400
megawatts
in
2026.”
Both
companies’
Boards
of
Directors
have
unanimously
approved
the
transaction,
which
is
expected
to
close
in
the
third
quarter
of
2024.
However,
the
acquisition
still
requires
approval
from
GRIID
shareholders
and
must
meet
other
customary
closing
conditions.
When
the
deal
is
completed,
GRIID
shareholders
will
receive
CleanSpark
common
stock.
The
exchange
ratio
will
be
calculated
by
dividing
the
total
merger
consideration
by
the
number
of
GRIID
common
shares
outstanding
at
the
merger’s
closing.
GRIID
was
established
in
2018
and
subsequently
began
mining
in
2019.
The
company
runs
four
mining
facilities
in
Watertown,
New
York,
and
Limestone,
Maynardville,
and
Lenoir
City,
Tennessee.
Additionally,
it
has
a
Research
and
Development
Center
in
Austin,
Texas,
and
a
Development,
Deployment,
and
Equipment
Repair
Center
in
Rutledge,
Tennessee.
Following
the
news,
GRIID
shares
fell
around
50%,
while
CleanSpark’s
rose
nearly
4%.
Go to Source
Author: Oluwapelumi Adejumo
