CleanSpark, Inc. Announces Proposed Private Offering of $550 Million of Convertible Notes
CleanSpark (CLSK) has announced plans to offer $550 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $100 million. The notes will be offered privately to qualified institutional buyers under Rule 144A.
The company plans to use the proceeds to fund capped call transactions, repurchase up to $125 million of common stock, repay Coinbase credit line, and for capital expenditures and acquisitions. The notes will be senior unsecured obligations, bearing no regular interest, and will be convertible into cash, common stock, or a combination thereof at CleanSpark's election.
The conversion terms will be determined during pricing negotiations. CleanSpark will enter into capped call transactions to reduce potential dilution and offset cash payments above principal amount upon conversion.
CleanSpark (CLSK) ha annunciato piani per offrire 550 milioni di dollari in obbligazioni senior convertibili con scadenza nel 2030, con un'opzione per i compratori iniziali di acquistare ulteriori 100 milioni di dollari. Le obbligazioni saranno offerte privatamente a compratori istituzionali qualificati ai sensi della Regola 144A.
L'azienda intende utilizzare i proventi per finanziare transazioni di call capped, riacquistare fino a 125 milioni di dollari di azioni ordinarie, rimborsare la linea di credito di Coinbase e per spese in conto capitale e acquisizioni. Le obbligazioni saranno obbligazioni senior non garantite, senza interesse regolare, e potranno essere convertite in contante, azioni ordinarie, o una combinazione di entrambi, a discrezione di CleanSpark.
I termini di conversione saranno determinati durante le trattative di prezzo. CleanSpark entrerà in transazioni di call capped per ridurre la potenziale diluizione e compensare i pagamenti in contante superiori all'importo principale al momento della conversione.
CleanSpark (CLSK) ha anunciado planes para ofrecer 550 millones de dólares en notas senior convertibles con vencimiento en 2030, con una opción para que los compradores iniciales compren 100 millones de dólares adicionales. Las notas se ofrecerán de manera privada a compradores institucionales calificados bajo la Regla 144A.
La compañía planea utilizar los ingresos para financiar transacciones de opción call limitada, recomprar hasta 125 millones de dólares de acciones ordinarias, reembolsar la línea de crédito de Coinbase y para gastos de capital y adquisiciones. Las notas serán obligaciones senior no garantizadas, sin interés regular, y se podrán convertir en efectivo, acciones ordinarias o una combinación de ambos a elección de CleanSpark.
Los términos de conversión se determinarán durante las negociaciones de precios. CleanSpark llevará a cabo transacciones de opción call limitada para reducir la posible dilución y compensar los pagos en efectivo que superen el monto principal al momento de la conversión.
클린스파크 (CLSK)는 2030년 만기 전환 가능한 선순위 채권 5억 5천만 달러를 제공할 계획을 발표했으며, 초기 구매자가 추가로 1억 달러를 구매할 수 있는 옵션도 포함되어 있습니다. 채권은 규칙 144A에 따라 자격 있는 기관 투자자에게 비공식적으로 제공됩니다.
회사는 수익금을 제한적 호출 트랜잭션 자금을 지원하고, 최대 1억 2천 5백만 달러의 보통주를 재구매하며, 코인베이스의 신용 한도를 상환하고, 자본 지출 및 인수에 사용할 계획입니다. 채권은 정기 이자가 없는 비보장 선순위 의무가 되며, 클린스파크의 선택에 따라 현금, 보통주 또는 이들의 조합으로 전환될 수 있습니다.
전환 조건은 가격 협상 중에 결정됩니다. 클린스파크는 잠재적 희석을 줄이고 전환 시 원금 초과 부분에 대한 현금 지급을 상쇄하기 위해 제한적 호출 트랜잭션에 참여할 것입니다.
CleanSpark (CLSK) a annoncé des plans pour offrir 550 millions de dollars en obligations senior convertibles arrivant à échéance en 2030, avec une option pour les acheteurs initiaux d'acheter 100 millions de dollars supplémentaires. Les obligations seront offertes de manière privée à des acheteurs institutionnels qualifiés en vertu de la règle 144A.
L'entreprise prévoit d'utiliser les recettes pour financer des transactions d'appels limités, racheter jusqu'à 125 millions de dollars d'actions ordinaires, rembourser la ligne de crédit de Coinbase et pour des dépenses d'investissement et des acquisitions. Les obligations seront des obligations senior non garanties, ne portant aucun intérêt régulier et pourront être converties en espèces, en actions ordinaires, ou en une combinaison des deux selon le choix de CleanSpark.
Les conditions de conversion seront déterminées lors des négociations de prix. CleanSpark s'engagera dans des transactions d'appels limités pour réduire la dilution potentielle et compenser les paiements en espèces dépassant le montant principal lors de la conversion.
CleanSpark (CLSK) hat Pläne angekündigt, 550 Millionen Dollar in wandelbaren Senior-Anleihen mit Fälligkeit im Jahr 2030 anzubieten, mit einer Option für die ursprünglichen Käufer, zusätzlich 100 Millionen Dollar zu erwerben. Die Anleihen werden gemäß Regel 144A privat an qualifizierte institutionelle Käufer angeboten.
Das Unternehmen plant, die Erlöse zur Finanzierung begrenzter Call-Transaktionen, zum Rückkauf von bis zu 125 Millionen Dollar an Stammaktien, zur Rückzahlung der Kreditlinie von Coinbase sowie für Investitionen in Sachanlagen und Akquisitionen zu verwenden. Die Anleihen werden ungesicherte Senior-Verbindlichkeiten sein, die keine regelmäßigen Zinsen tragen, und können nach Wahl von CleanSpark in Bargeld, Stammaktien oder eine Kombination daraus umgewandelt werden.
Die Umwandlungsbedingungen werden während der Preisverhandlungen festgelegt. CleanSpark wird in begrenzte Call-Transaktionen eintreten, um potenzielle Verwässerung zu reduzieren und Barzahlungen über dem Nennbetrag bei der Umwandlung auszugleichen.
- Raising substantial capital of $550M with potential for additional $100M
- Strategic debt restructuring through Coinbase credit line repayment
- Implementation of capped call transactions to minimize dilution impact
- $125M share repurchase program showing confidence in stock value
- Potential dilution risk if notes are converted to common stock
- Additional debt burden of up to $650M
- No regular interest payments might indicate higher conversion premium
Insights
The
The transaction's complexity, including the capped call overlay and concurrent share repurchases, indicates sophisticated financial engineering aimed at minimizing shareholder dilution while maximizing capital raised. This financing could significantly strengthen CleanSpark's position in the competitive Bitcoin mining sector, providing capital for growth while managing the balance sheet impact.
This offering could materially impact CleanSpark's market positioning in the Bitcoin mining industry. The substantial capital raise, combined with no regular interest burden, provides significant operational flexibility for expansion and acquisitions. The market's reaction will likely focus on the eventual conversion price and terms, which will indicate the company's implied growth premium. The capped call structure suggests management's confidence in share price appreciation potential while protecting against excessive dilution.
The timing of this offering, amid Bitcoin's recent surge, demonstrates strategic opportunism in capitalizing on favorable market conditions. The concurrent share repurchase component may help stabilize the stock price during the offering period, though investors should monitor potential market impact from option counterparties' hedging activities.
CleanSpark also expects to grant the initial purchasers of the Convertible Notes an option to purchase, within a 13-day period beginning on, and including the date on which the Convertible Notes are first issued, up to an additional
The Company intends to use the net proceeds from the offering to pay the cost of the capped call transactions (as described below), to use up to
The Convertible Notes will be senior unsecured obligations of the Company. The Convertible Notes will not bear regular interest, and the principal amount of the Convertible Notes will not accrete. The Convertible Notes will mature on June 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to December 15, 2029, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
The Convertible Notes will be convertible into cash, shares of the common stock or a combination of cash and shares of the common stock, at the Company's election. The initial conversion rate and other terms of the Convertible Notes will be determined at the time of pricing in negotiations with the initial purchasers of the Convertible Notes.
In connection with the pricing of the Convertible Notes, the Company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Convertible Notes and/or other financial institutions (the "option counterparties"). If the initial purchasers of the Convertible Notes exercise their option to purchase additional Convertible Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions with the option counterparties.
The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.
In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with, or shortly after, the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes' ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.
The Company also expects to repurchase shares of its common stock from certain of the investors in the Convertible Notes in privately negotiated transactions effected concurrently with the pricing of the Convertible Notes, and the Company expects the purchase price per share of the common stock repurchased in such transactions to equal the closing price per share of the common stock on the date the offering of the Convertible Notes is priced.
The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act or securities laws of any other jurisdiction, and the Convertible Notes and such shares of common stock may not be offered or sold in
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About CleanSpark
CleanSpark (Nasdaq: CLSK), America's Bitcoin Miner®, is a market-leading, pure play Bitcoin miner with a proven track record of success. We own and operate a portfolio of mining facilities across
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the proposed terms of the Convertible Notes, the capped call transactions and the proposed share repurchases, the completion, timing and size of the proposed offering of the Convertible Notes, the capped call transactions, and the anticipated uses of proceeds from the proposed offering (including the capped call transactions and proposed share repurchases). All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as "plan," "believe," "goal," "target," "aim," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would," "will" and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of CleanSpark's management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others, the risk that the Company may not be able to consummate the Convertible Notes transaction, the capped call transactions or the share repurchase on satisfactory conditions or at all, and other risks described in the Company's filings with the Securities and Exchange Commission (the "SEC"), including under the heading "Risk Factors" in those filings, and other risks it may identify from time to time. Forward-looking statements contained herein are made only as to the date hereof, and the Company assumes no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as expressly required by applicable law.
Investors:
Harry Sudock, SVP
702-989-7693
ir@cleanspark.com
Media:
Eleni Stylianou
702-989-7694
pr@cleanspark.com
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SOURCE CleanSpark, Inc.
FAQ
What is the size of CleanSpark's convertible note offering in December 2023?
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How will CleanSpark use the proceeds from the convertible note offering?
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How much stock is CLSK planning to repurchase from convertible note investors?
