CleanSpark to Acquire GRIID in $155M Bitcoin Miner Deal
CleanSpark has announced its acquisition of GRIID Infrastructure in a deal valued at $155 million, to be completed entirely in stock transactions. This agreement has been approved by both companies’ boards and is anticipated to be finalized by the third quarter. CleanSpark will be taking on all of GRIID’s debts and obligations, as well as providing a $5 million loan to facilitate the transaction.
Following the announcement, GRIID’s shares plummeted by more than 50%, while CleanSpark’s shares experienced a nearly 4% increase, indicating market perceptions of the deal as a significant opportunity. CleanSpark’s CEO, Zach Bradford, highlighted the strategic significance of the acquisition, emphasizing the company’s commitment to replicating its successful infrastructure development in Georgia in Tennessee, aiming to establish over 400 MW of infrastructure supported by long-term power contracts within the next three years.
The current landscape of bitcoin mining mergers and acquisitions has been vibrant, with companies like Riot Platforms and Bitfarms engaging in hostile takeover attempts, and Core Scientific attracting attention for a potential buyout exceeding $1 billion. This heightened activity within the sector has been further fueled by recent industry events, such as the halving event, intensifying competition and driving consolidation efforts.
The acquisition is expected to enhance CleanSpark’s operational capacity significantly, with plans to exceed 100MW in Tennessee by the end of this year and expand to 200MW in the following year, ultimately reaching over 400MW by 2026. Additionally, the companies have established a hosting agreement allocating 20MW of power capacity to CleanSpark, further solidifying their partnership.
GRIID Infrastructure, founded in 2018, recently debuted on the Nasdaq following delays attributed to market conditions. The company operates mining facilities in various locations, including Watertown, New York, and multiple sites across Tennessee. This strategic acquisition aligns with CleanSpark’s growth objectives and underscores its commitment to expanding its operational footprint and capabilities within the cryptocurrency mining industry.
As the deal progresses towards completion, the collaboration between CleanSpark and GRIID Infrastructure is poised to reshape the dynamics of the bitcoin mining sector, positioning the combined entity for sustained growth and operational excellence in the evolving digital asset landscape.
