CleanSpeak to Acquire Rival GRIID for 155 Million

CoinDesk reported:
CleanSpark, a bitcoin miner focused on sustainable development, announced plans to merge with Griid Infrastructure on Thursday and will acquire all common shares of the mining company for $155 million.
Following the announcement, Griid Infrastructure’s stock price plummeted. As of the time of writing, the company’s stock price fell by 49% to $1.20 on the trading day. Nonetheless, the Cincinnati-based mining company’s stock price has risen by 55% over the past month.
In a press release, the company stated that in addition to the merger agreement, Griid’s currently available 20 megawatts of power will be allocated to CleanSpark. CleanSpark estimates that, as a result of this transaction, its power capacity may grow by over 400 megawatts within the next two years.
Zach Bradford, CEO of CleanSpark, stated in a release that Griid’s “impressive energy infrastructure pipeline” in Tennessee aligns with CleanSpark’s presence in Georgia and Mississippi. He added, “This acquisition will provide us with a clear and stable path for the next three years.”
In Georgia, CleanSpark already has the capacity to build over 400 megawatts of power, supported by valuable long-term power contracts. In addition to the existing power infrastructure in Mississippi, CleanSpark announced that it will be adding mining facilities in Wyoming.
As part of the merger, CleanSpark has agreed to assume all of Griid’s outstanding debt as part of the transaction. This move will provide Griid with $5 million in operating capital and approximately $50.9 million in phased debt repayment, and will raise funds for Griid during the transition period.
Founded in 2018, Griid operates mining facilities in Watertown, New York, and several other locations in Tennessee. An element of Griid’s business that CleanSpark emphasized is its “community-first approach to building data centers,” focusing on local communities.
Meanwhile, CleanSpark’s stock price barely changed on the trading day. As of the time of writing, CleanSpark’s stock had risen by 0.44%, trading at $16.15.
The merger comes as bitcoin miners are considering the so-called halving in April, a pre-planned event that occurs every four years to produce new bitcoins. Due to the scarcity of newly discovered bitcoins, the profitability of mining bitcoins is decreasing.
Recently, there has been a wave of mergers and acquisitions in the mining industry. Currently, Canadian mining company Bitfarms is protecting itself from a hostile takeover by mining giant Riot Platforms, which abandoned its plans earlier this week when it faced a “poison pill.”
The disagreement between the boards of directors of CleanSpark and Griid is much smaller. The boards of both companies have agreed to the terms of the transaction, which is expected to be completed in the third quarter of this year.
Andrew Hayward, Editor