CleanSpark's $800M Share Offering Fallout: Why Did Bitcoin Miners Plunge 10%?

Bitcoin miner CleanSpark witnessed a significant drop of 10% in after-hours trading following an $800 million share offering. This move came as the firm amended its at-the-market (ATM) offering agreement, now allowing the sale of up to $800 million of its stock.

CleanSpark Alters $500 Million ATM Agreement, Contemplates Stock Issuance at Minimal Price for Capital Raise

CleanSpark initially agreed on a $500 million ATM offering with New York investment banking firm H.C. Wainwright & Co. However, a recent SEC filing on March 28 revealed the adjustment, stating the possibility of offering and selling shares at $0.001 per share.

Primary stock dilution, like this offering, is a common tactic employed by publicly-listed companies to raise additional capital. CleanSpark joins other Bitcoin miners like Riot Platforms and Marathon Digital Holdings in pursuing similar ATM agreements for financial boosts.

CleanSpark Stock Plummets 16% Post-Market, Yet Year-to-Date Gains Remarkable at 685%

Despite starting the trading day at $23.20, CleanSpark's shares plummeted by 16% to $19.1 in after-hours trading, marking an 8.2% fall during regular hours, according to Google Finance.

Despite the immediate setback, CleanSpark has shown impressive growth, boasting a 95% increase in 2024 and a staggering 685% surge over the past 12 months.

CleanSpark Actively Prepares for Bitcoin Halving, Anticipates Hash Rate Doubling and Cost Reduction by H1 2024

As the Bitcoin halving event approaches on April 20, CleanSpark, like many other miners, braces for reduced mining rewards. Nevertheless, it maintains an optimistic outlook, particularly with its low production cost of $26,900 per Bitcoin post-halving.

CleanSpark anticipates doubling its hash rate in the first half of 2024, buoyed by recent agreements to acquire new mining facilities. These include four facilities in Mississippi, instantly adding 2.4 exahashes per second (EH/s), and another in Dalton, Georgia, expected to contribute 0.8 EH/s upon completion in April 2024.