CleanSpark to Acquire GRIID for $155 Million

Mining firm CleanSpark has announced the acquisition of its competitor GRIID for $155 million.

We’ve announced an agreement to acquire @griid based on an enterprise value of $155 million and expansion plans of over 400 MW in Tennessee. $CLSK expects to add over 400 MW in the state over the next two years.

Under the definitive merger agreement, we will purchase all issued… pic.twitter.com/Pd5oXPq4zp

— CleanSpark Inc. (@CleanSpark_Inc) June 27, 2024

The deal has been approved by the boards of directors of both companies and is expected to close by the third quarter of 2024.

CleanSpark will assume all debts and other obligations of GRIID, providing a $5 million working capital loan and a $50.9 million term loan.

“After the deal closes, we will focus on the best opportunities for GRIID. We plan to exceed 100 MW in Tennessee by the end of this year and eventually increase to 200 MW in 2025 before reaching 400 MW in 2026,” stated CleanSpark CEO Zach Bradford.

The companies have also entered into an exclusive agreement to allocate 20 MW of capacity to CleanSpark.

Following the news, GRIID’s shares fell by 43%, from $2.09 to $1.18. Meanwhile, CleanSpark’s stock initially rose by 4% before correcting back.

In late May, it was revealed that mining company Riot Platforms had made an offer to acquire rival Bitfarms. Bitfarms deemed the offer as “substantially undervaluing the firm and its growth prospects.”

The Bitfarms board expressed a desire to continue discussions on a potential deal “in a meaningful way,” while adhering to traditional confidentiality measures. A special committee stated that the offer “significantly undervalues the company and its growth prospects.”

Riot declined to participate in the process of exploring strategic alternatives, continuing to purchase shares on the secondary market. In June, Bitfarms adopted a shareholder rights plan through a “poison pill.” Riot nominated three independent directors to the board of the target company.

In June, CleanSpark finalized an agreement to purchase five operational bitcoin mining facilities in Georgia for $25.8 million.

In January, GRIID, founded in 2019, debuted on Nasdaq through a reverse merger with a SPAC.