Bitcoin
Bitcoin (BTC) miner CleanSpark (CLSK) will buy Peer Grid (GRDI) for $155 million in enterprise value
Bitcoin mining deals continue to surge as CleanSpark (CLSK) has agreed to purchase peer GRIID Infrastructure (GRDI) in an all-stock deal valued at $155 million.
The purchase will see CleanSpark assume all of GRIID’s debt and other obligations and provide a $5 million loan as a settlement bridge loan of approximately $50.9 million, according to a declaration On thursday.
“This acquisition would give us a clear and firm path over the next three years to accomplish in Tennessee what we have proudly achieved in Georgia over the past three years,” said CleanSpark CEO Zach Bradford. “That achievement was building more than 400 MW of infrastructure supported by valuable, long-term power contracts.”
GRIID shares fell more than 50% following the announcement, while CleanSpark shares rose nearly 4%, implying that traders are likely viewing the deal as a fire sale.
The news comes as bitcoin mining mergers and acquisitions (M&A) are heating up following the recent halving event, which has made the already competitive industry even more competitive. Recently, Riot Platforms (RIOT) and Bitfarms (BITF) were fighting in a hostile takeover attempt, while Core Scientific (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 100 MW capacity in Tennessee by the end of the year and eventually increasing to 200 MW next year and more than 400 MW by 2026, according to the release.
The companies have also entered into a hosting agreement where 20 megawatts (MW) 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.