CleanSpark Secures $35 Million Loan to Buy New Equipment

The American mining company CleanSpark secured debt financing of $35 million backed by 3,336 new Antminer S19j Pro devices.

Sustainable #bitcoin miner @CleanSpark_Inc has raised $35 million in debt financing from Trinity Capital backed by 3,336 new S19j Pro miners. $CLSK @Aoyon_A reportshttps://t.co/EHjYXWU7N9

— CoinDesk (@CoinDesk) April 26, 2022

A three-year loan for the equipment purchase at an annual interest rate of 9.9% was provided by Trinity Capital.

Debt capital is currently the cheapest source of funding for CleanSpark, according to Chief Financial Officer Gary Vecchiarelli.

Another option for financing capital expenditures within the company is the sale of a portion of the bitcoins it owns.

This approach was used to purchase 4500 Antminer S19 in October 2021.

In December 2020, the Nasdaq-listed company acquired the American mining firm ATL Data Centers for $19.4 million. The deal immediately elevated CleanSpark into one of the largest public companies in the industry.

According to the statement, the company’s fleet comprises 20,000 ‘latest-generation’ devices. In addition, a further approximately 12,000 units are expected to be delivered.

As Arcane Research notes, public mining companies account for 19% of the total Bitcoin hashrate.

In their view, Bitcoin mining remains profitable, but profitability is under pressure from the decline in the asset’s price and the growth of the network’s hashrate.