Leading US publicly-listed Bitcoin (BTC) miners from Wall Street are strengthening their financial positions through significant capital raises as Bitcoin trades above $108,000. Industry heavyweights CleanSpark (NASDAQ: CLSK) and Bitfarms (NASDAQ: BITF) announced major financial moves to fuel their expansion plans.
CleanSpark Raises $650 Million in Zero-Coupon Note Sale
CleanSpark has secured a landmark $650 million zero-coupon convertible senior notes offering, implementing financial engineering to protect shareholder interests.
— CleanSpark Inc. (@CleanSpark_Inc) December 17, 2024
The company structured the deal with capped call transactions at $24.66 per share, representing a 100% premium over its closing price. To further enhance shareholder value, CleanSpark executed a share repurchase program, buying back 11.76 million shares for approximately $145 million.
"We are proud to have closed this offering with some of the strongest institutional investors in the world and are excited to share that our growth through 50 EH/s and beyond is now expected to be more than fully funded from the proceeds," said Zach Bradford, CEO and President. "In addition to funding the growth to 50 EH/s, share buyback, and capped call, the additional capital will allow us to keep adding the bitcoin we mine to our balance sheet.”
Bitfarms' Equity Program Progress
Bitfarms has taken a different approach to capital raising, filing an updated prospectus supplement for its ongoing at-the-market equity program. The company has already successfully raised $288 million through the distribution of 128.8 million common shares, with $87 million still available under the program.
The fresh capital is earmarked for expanding existing mining operations and strengthening working capital positions.
In the meantime, another publicly listed Bitcoin miner, Riot Platforms (NASDAQ: RIOT) finalized loan deal to continue its BTC purchasing strategy. The company closed a $594.4 million offering of 0.75% convertible senior notes due in 2030.
Strategic Timing Amid Bitcoin's Price Discovery
These financial maneuvers come at a crucial moment as Bitcoin enters a new price discovery phase reaching $108,000. Mining companies are capitalizing on favorable market conditions to secure their competitive positions in the evolving digital asset landscape.
The timing of these raises reflects the industry's confidence in Bitcoin's long-term prospects and the need for operational scale to maintain profitability in an increasingly competitive mining environment.
The results are plain to see. Profits from cryptocurrency mining have just reached a seven-month high, with US-listed companies now controlling nearly 30% of the global network hashrate. However, higher prices also mean increased competition and greater mining difficulty. While BTC continues to rise, miners are able to mine fewer coins with the same computing power.
This article was written by Damian Chmiel at www.financemagnates.com.
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