CleanSpark’s Stock Falls 10% Following $800M Share Offering Announcement

cropped-Tesla-Block-and-Blockstream-to-mine-bitcoin-off-solar-power-in-Texas.webp

CleanSpark’s Stock Falls 10% Following $800M Share Offering Announcement

BollywoodFever, March 28: Bitcoin mining company CleanSpark saw its shares fall by 10% in after-hours trading on Thursday following an announcement that it would increase its at-the-market (ATM) offering to $800 million worth of stock.

Originally, CleanSpark had established a $500 million ATM offering agreement with H.C. Wainwright & Co, a New York-based investment bank, on January 5, 2024. According to a March 28 SEC filing, the company noted it might periodically offer and sell its common stock at a nominal price of $0.001 per share.

cropped-Tesla-Block-and-Blockstream-to-mine-bitcoin-off-solar-power-in-Texas.webp

Issuing additional shares as a means to raise capital is a strategy frequently employed by publicly traded companies.

CleanSpark joins other Bitcoin mining firms like Riot Platforms and Marathon Digital Holdings, which have also undertaken significant ATM agreements of $750 million each in recent months.

Following the announcement, CleanSpark, which boasts a market cap of $4.2 billion, saw its stock potentially diluted by 19% due to the $800 million offering.

The stock, which opened the day at $23.20, dropped 16% to $19.1 in after-hours trading. This decline includes an 8.2% drop during the regular trading session, as reported by Google Finance.

Despite this downturn, CleanSpark’s stock has experienced a remarkable rise, increasing by 95% in 2024 and 685% over the past year.

The company is gearing up for the anticipated Bitcoin halving event on April 20, which will reduce the mining reward from 6.25 BTC ($441,000) to 3.125 BTC ($220,500).

CleanSpark is highlighted for its efficiency, with a CoinShares research report on January 12 revealing it has the lowest cost of production per Bitcoin post-halving, at $26,900.

On February 6, CleanSpark announced plans to double its hash rate in the first half of 2024 following a $19.8 million acquisition of four new mining facilities in Mississippi, immediately adding 2.4 exahashes per second (EH/s) to its operations.

Additionally, the company has agreed to purchase another mining facility in Dalton, Georgia, for $6.9 million, expected to contribute 0.8 EH/s upon completion in April 2024.

Also Read, South Korea’s Factory Production Sees Largest Increase in Six Months for February, While Retail Sales Decline

Bookmark and Follow us for More Business News

Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

Leave a Reply