- CleanSpark secures $100M via Bitcoin-backed loan on Coinbase Prime, boosting after-hours stock 5%.
- Firm expands Bitcoin mining, AI, and HPC with record $198.6M revenue and August’s 657 BTC output.
Bitcoin mining company CleanSpark saw its after-hours trading increase by 5% on Monday after it announced it had raised an extra $100 million in funding. The company used a part of its massive 13,000 Bitcoin holdings as collateral on the institutional lending platform of Coinbase Prime. The stock prices rose to $14.44 during the extended trading hours on Monday, as compared to the previous price of $13.74, indicating that investors have confidence in the expansion plan.
The most recent funding facility takes CleanSpark’s total Bitcoin-secured credit facilities with Coinbase Prime to about 300 million. Chief Business Officer Harry Sudock highlighted that the company would focus on maximizing shareholder value by using Bitcoin strategically. The capital will finance the aggressive growth of CleanSpark in its Bitcoin mining activities, high-performance computing, and development of energy infrastructure.
Strategic Diversification Beyond Traditional Mining
CleanSpark is not the only company in the Bitcoin mining sector that is shifting to artificial intelligence and high-performance computing services to diversify its revenue streams. Sudock described the overall asset optimization strategy of the company, examining each power contract and energy relationship to optimize it. Instead of concentrating on particular portfolio ratios, CleanSpark concentrates on versatility to seize new opportunities in various sectors.
The company plans to find power pipeline segments that would be more appropriate for high-performance computing than the traditional Bitcoin mining activity. This flexibility will enable CleanSpark to seek greater opportunities to grow its power portfolio without compromising its competitive advantages in various markets. Sudock emphasized that versatility generates opportunity maximization that allows the company to manage the evolving market conditions.
The financing announcement comes after CleanSpark achieved a record-breaking third quarter performance, which produced the highest revenue of the company at $198.6 million, the highest quarterly results in the history of the company. August mining activities resulted in 657 Bitcoin, which is a substantial 37.5% growth compared to the same month last year. This operating momentum helps the management to be confident in expanding operations with Bitcoin-based financing solutions.
The strategy of CleanSpark shows that mining firms can use their crypto holdings to raise growth capital and retain their exposure to a potential rise in the value of Bitcoin. The strategic alliance with Coinbase Prime offers institutional-quality lending services to the company, allowing it to grow further without diluting the current shareholders by using conventional equity financing techniques.
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Source: https://thenewscrypto.com/cleansparks-bitcoin-strategy-pays-off-with-100m-credit-boost/
