CleanSpark to Acquire GRIID Infrastructure in 155 Million AllStock Transaction
CleanSpark Inc. (CLSK) has recently announced its plans to acquire GRIID Infrastructure in a merger agreement valued at $155 million. This acquisition includes the payment and assumption of GRIID’s debt. To solidify their partnership, CleanSpark and GRIID have also entered into an exclusive hosting agreement, which will allocate 20 MW of power to CleanSpark immediately.
The merger has received unanimous approval from the Boards of Directors of both companies and is expected to be finalized in the third quarter of 2024, pending GRIID shareholder approval and other standard conditions.
According to the agreement terms, GRIID stockholders will receive shares of CleanSpark common stock, with the exchange ratio determined by the aggregate merger consideration. The merger takes into account GRIID’s outstanding liabilities and values CleanSpark’s common stock at $16.587 per share, while the current trading price is $16.35 per share.
CleanSpark has taken on all of GRIID’s debt and other responsibilities. In order to support GRIID during the transition, CleanSpark has provided a $5 million working capital loan and a $50.9 million pay-down bridge loan. These loans are secured and hold seniority over GRIID’s other debts.
Zach Bradford, the CEO of CleanSpark, expressed excitement about the merger and emphasized the potential for rapid growth in Tennessee. Bradford stated, “This acquisition provides us with a clear and steady path to replicate in Tennessee what we successfully achieved in Georgia – constructing over 400 MW of infrastructure supported by long-term power contracts.” He also outlined plans to surpass 100 MW in Tennessee by the end of 2024, increase to 200 MW in 2025, and ultimately reach over 400 MW by 2026.
GRIID, a vertically integrated Bitcoin (BTC) mining company, owns energy infrastructure and high-density data centers primarily in Tennessee. The company’s stock has experienced significant volatility in recent days. Starting the week at $1.17 per share, it surged over 150% in just three days, reaching prices above $3 per share on Wednesday. However, following the announcement of the acquisition, the company’s shares have dropped back to $1.20 per share.
GRIID operates bitcoin mining data centers throughout Tennessee, with support from the Tennessee Valley Authority. In addition to its facilities in Tennessee, GRIID also has operations in Watertown, New York, Ohio, and Texas.
