CleanSpark Buys GRIID In $155 Million Transaction

CleanSpark, one of the biggest Bitcoin miners in the US, has acquired GRIID Infrastructure, another Bitcoin miner, through a $155 million transaction. 

The merger comes as CleanSpark expands its foothold over the Bitcoin mining space by acquiring data centers and other miners. 

This way, the firm gets to channel more power to increase the number of bitcoins it mines and drive up profits by providing processing power to meet the computational requirements of AI companies.

It recently acquired five mining facilities in Georgia, increasing its capacity by 60 megawatts (MW) of power. 

The GRIID purchase will allow it to add 400 MW of power by 2026. Zach Bradford, CleanSpark CEO, said about the acquisition, “We are looking forward to welcoming the GRIID team into the CleanSpark family and we are excited to apply the CleanSpark way, carefully honed alongside the communities we operate in Georgia and Mississippi, to GRIID’s impressive pipeline in Tennessee.”

He added, “This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we proudly achieved in Georgia over the past three years. That achievement was to build out over 400 MW of infrastructure backed by valuable, long-term power contracts.”

GRIID will provide 20 MW to CleanSpark immediately as part of this deal. Beyond the $155 million paid for the acquisition, CleanSpark has loaned GRIID $5 million as acting capital. 

It has also shelled out $50.9 million so GRIID can settle all immediate repayments. GRIID stockholders will also receive an equivalent value of CleanSpark stock. CleanSpark will honor GRIID’s debts to investors.

Trey Kelly, GRIID’s CEO, spoke about his company’s acquisition, “I am incredibly excited for the opportunity for GRIID to join the CleanSpark team. Together, we will achieve rapid growth in the Tennessee Valley.”

CleanSpark’s stock price jumped 2.2% as news of the agreement broke out on 27 June.