Bitcoin Miner CleanSpark Acquires Griid for $155 Million

CleanSpark has announced its plan to merge with Griid Infrastructure for $155 million. This acquisition will boost CleanSpark’s power capacity to 400 megawatts in Tennessee, as stated by CEO Zach Bradford. The deal involves CleanSpark buying all of Griid’s common shares and allocating 20 megawatts of Griid’s current power to CleanSpark, according to CleanSpark_Inc.

Following the announcement, Griid’s share price dropped 49% to $1.20, despite a 55% increase over the past month. CleanSpark’s stock showed little change, with a 0.44% increase to $16.15. 

The merger includes CleanSpark assuming Griid’s outstanding debt and providing $5 million in working capital along with a $50.9 million pay-down bridge loan. This will support Griid during the transition. Established in 2018, Griid operates mining facilities in New York and Tennessee, known for their community-focused approach.

CleanSpark’s CEO highlighted the synergy between Griid’s infrastructure in Tennessee and CleanSpark’s presence in Georgia and Mississippi. CleanSpark plans to expand its power capacity in Georgia to over 400 megawatts and has announced new facilities in Wyoming.

The acquisition comes as Bitcoin miners face tighter profit margins following Bitcoin’s fourth halving event in April, which reduced the amount of new Bitcoin created. This scarcity has made mining less profitable, leading to increased mergers and acquisitions in the industry.

This merger is part of a broader trend among Bitcoin miners. For instance, Riot Platforms recently abandoned its hostile takeover bid for Bitfarms due to Bitfarms’ “poison pill” defense. However, CleanSpark and Griid have agreed on the terms of their deal, expected to close in the third quarter of this year.