CleanSpark agrees to acquire GRIID for $155 million amid mining difficulties

Bitcoin miner CleanSpark has agreed to acquire rival GRIID Infrastructure for $155 million, according to a statement on June 27.

Additionally, the two companies announced that they have signed an exclusive hosting agreement for all currently available power, 20MW of which will be immediately allocated to CleanSpark.

This development comes as BTC miners are facing severe difficulties following the recent halving event that affected their profits. As a result, some miners have started to diversify their income streams by mining altcoins and turning to AI.

Acquisition details

Under the transaction, CleanSpark will assume all of GRIID’s existing debt and obligations. Additionally, the miner provided GRIID with a working capital loan of $5 million and a bridge loan of approximately $50.9 million to cover certain obligations at the time of signing.

CleanSpark CEO Zach Bradford said the acquisition will help the company build on its success in Georgia and Tennessee over the next three years. He said:

“(The acquisition) will allow us to exceed 100 megawatts in Tennessee by the end of this year, grow to 200 megawatts by 2025, and ultimately exceed 400 megawatts by 2026.”

The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the third quarter of 2024. However, the acquisition still requires approval from GRIID shareholders and is subject to other customary closing conditions.

Upon completion of the transaction, GRIID shareholders will receive CleanSpark common stock. The exchange ratio is calculated by dividing the total merger consideration by the number of shares of GRIID common stock outstanding at the time of closing of the merger.

GRIID was founded in 2018 and began mining in 2019. The company operates four mining facilities in Watertown, New York; Maynardville Limestone; and Lenoir City, Tennessee. It also has a research and development center in Austin, Texas, and a development, distribution, and equipment repair center in Rutledge, Tennessee.

GRIID shares fell about 50% following the news, while CleanSpark rose about 4%.