CleanSpark secures $100m bitcoin-backed credit facility with Two Prime

LAS VEGAS - CleanSpark, Inc. (NASDAQ:CLSK), currently valued at $4.1 billion by market capitalization, has expanded its capital strategy by opening a new $100 million Bitcoin-backed credit facility with Two Prime, according to a press release statement issued Thursday. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.37x, indicating robust liquidity management.

The financing brings CleanSpark’s total collateralized lending facilities to $400 million, providing additional non-dilutive capital for the Bitcoin mining company. The funds are expected to support Bitcoin mining hashrate deployment, investments in high-performance computing capabilities, and the company’s Digital Asset Management strategies. The company has demonstrated strong growth, with revenue increasing by 85% over the last twelve months to $632 million.

Matt Schultz, CleanSpark’s CEO and Chairman, said the financing would help maximize current megawatts in the company’s portfolio and accelerate potential development of high-performance compute campuses.

Alexander Blume, CEO of Two Prime, described his company as "a trusted partner to leading institutional bitcoin firms" that delivers "fair pricing and reliable capital as the industry matures."

CleanSpark’s Chief Financial Officer and President Gary A. Vecchiarelli noted that the company has utilized its treasury balance of nearly 13,000 bitcoin to finance growth through "responsibly sized leverage" with partners like Two Prime.

The company stated that its $400 million total capacity remains largely undrawn, and with strong cash flow and opportunities ahead, it is positioned to rapidly pay down debt.

CleanSpark describes itself as "America’s Bitcoin Miner" that operates data centers across the United States. Two Prime Lending Limited provides secured credit solutions to institutional bitcoin holders, with over $3 billion in lending capacity, according to the press release. For deeper insights into CleanSpark’s performance and potential, InvestingPro offers comprehensive analysis with 13 additional ProTips and detailed financial metrics in its Pro Research Report, available exclusively to subscribers.

In other recent news, CleanSpark, Inc. has reported the mining of 657 bitcoin in August, with an average daily production of 21.20 bitcoin and a peak single-day production of 21.71 bitcoin. The company holds a total of 12,827 BTC, with 3,026 of those posted as collateral. Additionally, CleanSpark has expanded its Bitcoin-backed credit facility with Coinbase Prime by $100 million. This additional financing will be used for strategic capital expenditures, including expanding CleanSpark’s energy portfolio and scaling its Bitcoin mining operations. In leadership developments, CleanSpark announced a strategic realignment with four key promotions. Gary A. Vecchiarelli has been named President while continuing as Chief Financial Officer, and Scott Garrison has transitioned to Chief Development Officer and Executive Vice President. Meanwhile, Thumzup Media Corporation has announced a strategic shift toward Dogecoin mining, planning to acquire DogeHash Technologies, which requires shareholder approval.

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