On Tuesday, bitcoin mining and energy technology company Cleanspark announced it had raised $35 million in funding from Trinity Capital. According to the company, Cleanspark intends to use the funds for growth capital expenditures.
Cleanspark will increase growth spending with $35 million in funding from Trinity Capital
Cleanspark announced a $35 million deal with venture capital fund Trinity Capital to fuel the company’s growth. The financial deal follows Cleanspark’s recent expansion in Texas in March, when the company announced plans to expand in the Lone Star State with 500 megawatts (MW) of renewable energy.
According to Cleanspark, the three-year financing deal with Trinity Capital “is backed by 3,336 new S19j Pro miners and has an annual interest rate of 9.9%.” “As we mentioned in our first-quarter earnings call, leveraged capital is currently the lowest cost of capital available to the company,” Gary Vecchiarelli, Cleanspark CFO, said in a statement. The Cleanspark executive added:
This non-dilutive loan is an example of how we are implementing our capital raising strategy and expectations that we have previously communicated. We intend to continue our efforts to obtain non-dilutive capital to fund our growth-related capital expenditure needs. It is worth noting that we have not used our ATM since November.
Funding to support expansion and operations while maximizing returns to shareholders
Cleanspark considers itself a sustainability-oriented bitcoin mining company, and “funding is intended to strengthen Cleanspark’s sustainable business.” The company converts a portion of its bitcoins (BTC) to fund expansion and operations “to limit shareholder dilution and sustainably maximize shareholder returns.”
Over the past year, Cleanspark has been acquiring miners and has taken a number of business steps, including launching a 20MW immersion cooling initiative last December. Ryan Little, managing director of equipment finance at Trinity Capital, explained during the announcement that the company was looking forward to working with Cleanspark.
“We are excited to partner with the Cleanspark team, which is committed to responsible bitcoin mining using a combination of sustainable energy sources, including nuclear, hydroelectric, solar and wind,” said Little. “Cleanspark is a great addition to our portfolio, and it recently made the Financial Times list of the 50 fastest-growing companies. We look forward to being part of their growth story.”
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