Miner CleanSpark Receives $100 Million in Bitcoin-Backed Financing From Coinbase
CleanSpark announced on Monday that it had obtained a new $100 million credit line from Coinbase Prime, which would prolong the miner’s current agreements with the exchange and provide more funds for growth.
Gary A. Vecchiarelli, CFO of CleanSpark, stated in a statement that the facility, which is supported by CleanSpark’s Bitcoin holdings, intends to finance “accretive growth using non-dilutive financing.”
According to the corporation, the money raised will go toward new high-performance computer initiatives, mining capacity expansions, and energy buildouts.
Matt Schultz, CEO of CleanSpark, stated, “We see tremendous opportunity to accelerate mining growth while simultaneously optimizing our assets, particularly those near major metro centers and in our immediate pipeline.”
With BTC Holdings At $1.43b, CleanSpark Leans On Credit Rather Than Selling Coins
The agreement expands on previous actions. As part of a larger trend among miners to move away from equity issuance and coin sales and toward revolving loans secured by Bitcoin, CleanSpark increased their facility with Coinbase Prime by up to $200 million in April.
The similar path has been taken by peers. Riot Platforms approached Coinbase for a $100 million deal in April, and Hut 8 raised its line to $130 million in June. These lines allow miners to post Bitcoin as collateral and more carefully manage time market sales while maintaining treasury balances.
According to Bitcoin Treasuries data, CleanSpark is one of the biggest public corporate holders with 12,703 BTC, which is valued at almost $1.43 billion at current prices. According to the corporation, the additional financing will assist in matching capital requirements with an increasingly challenging network.
Record Hashrate And Lower Fees Squeeze Miner Margins, Costs Keep Rising
In August, transaction fees dropped below 1% of block rewards, lowering a variable revenue buffer, while Bitcoin’s hashrate and difficulty hit all-time highs this year. In order to cope with the growing expenses of energy and equipment, miners are becoming more dependent on fixed subsidies and balance sheet tools.
Hardware and logistics have also increased costs. Tariffs on imported rigs from Asia as early as March increased the burden, potentially resulting in liabilities for previous shipments and making it more difficult for US operators to complete procurement timetables.
Nevertheless, CleanSpark reported its best quarter to date last month, with revenue of $198.6 million for its fiscal third quarter, up 91% from $104 million the previous year and exceeding analyst estimates of roughly $195 million. Reversing a $236.2 million deficit, net income increased to $257.4 million.
These days, Bitcoin-backed loans serve as a link between erratic cash flows and consistent infrastructure requirements. Firm prices allow for larger lines and more collateral capacity. The structure can nevertheless lessen forced selling when prices decline, particularly if treasuries are substantial.
The combination of network efficiency, treasury management, and credit availability has become crucial to miners’ strategies.
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