CleanSpark, a bitcoin miner, updated its stock offering agreement and now plans to sell up to $800 million of its stock, causing a 10% decline in after-hours trading.
CleanSpark Stock Price Plunges 10 Following 800M Share Offering | Source: Google Finance
This action, which is typical of public firms, is meant to raise money. A $500 million first offering with H.C. Wainwright & Co. permitted CleanSpark to sell shares on a recurring basis at $0.001 each.
Marathon Digital Holdings and Riot Platforms both used similar tactics the previous year. With a market valuation of $4.2 billion, CleanSpark’s shares would be diluted by 19% as a result of the proposed $800 million offering.
In anticipation of the April 20th Bitcoin halving, which will lower mining incentives, CleanSpark is getting ready. At $26,900 per Bitcoin, it has the lowest post-halving production cost. It stated plans to double its hash rate by the middle of 2024, driven by newly constructed mining operations in Georgia and Mississippi.
In preparation for the April 20 Bitcoin halving event, which will lower mining payouts from 6.25 BTC to 3.125 BTC, CleanSpark is working hard. With new mining facilities in Mississippi and Georgia, which will cost $19.8 million and $6.9 million, respectively, they expect to double their hash rate after halving.
Even though CLSK opened at $23.20, it dropped 16% to $19.1 after hours as part of a daily decrease of 8.2%.