Mentioned:
Two of the largest publicly traded companies in crypto have come together on a new debt deal.
What’s happening:
- CleanSpark (NASDAQ: CLSK) has secured a new $200M USD credit facility from Coinbase (NASDAQ: COIN) to accelerate expanding their Bitcoin mining operations
Why it matters:
- CleanSpark is one of the largest publicly traded Bitcoin miners in the world and currently holds roughly a billion dollars of Bitcoin directly as an asset
Going deeper:
- The new credit facility from Coinbase is backed entirely by CleanSpark’s Bitcoin holdings as collateral
- CleanSpark has publicly stated that they new credit facility from Coinbase is aiming to usher in the ability to aggressively expand their Bitcoin mining capacity and total exahash without needing to dilute shareholders through continual equity financings
The fine print:
- CleanSpark also plans to begin selling some of their Bitcoin holdings to both the pay down the new credit facility from Coinbase as it’s drawn upon as well as fund potential new data centre acquisitions and hardware purchases, which represents a sharp deviation from their previous commitment to always holding all of their Bitcoin for future price appreciation
