CleanSpark Declines Following Pricing of $550 Million Convertible Bond Offering

Bitcoin mining company CleanSpark (NASDAQ: CLSK) is trading at approximately $11.96, down about 3% before the market opens today. The Las Vegas-based firm announced the pricing of a $550 million convertible bond (CB) private placement that will mature in June 2030, with a 0% interest rate.

The initial conversion price for these bonds has been set at $14.80, which is 20% above the last closing price of the stock. CleanSpark plans to allocate about $76.5 million of the net proceeds to finance cap call transactions. Additionally, the company intends to use up to $145 million directly from the CB's buyers for common stock repurchase.

According to the company's statement, the remaining proceeds from this issuance will be used to fully pay off outstanding amounts under the credit facility with cryptocurrency exchange Coinbase (NASDAQ: COIN).