The Las Vegas-based company CleanSpark Miner will borrow $35 million to purchase even more mining equipment as we can see more today in our latest cryptocurrency news today.
CleanSpark miner agreed to borrow more funds from Trinity Capital to purchase more mining equipment and the three-year financing agreement was secured by 3336 new S19J Pro BTC mining rigs according to the SEC filing submitted recently. The company has 23,000 BTC miners in operation and will add another 12,000 before the end of October. The LA-based BTC miner trades on NASDAQ under the CLSK and recieved $20 million but has until the end of the year to get another $15 million in increments of $500,000. The CFO Gary Vecchiarelli stated:
“As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the company.”
If your CFO is struggling with the dilemma of whether to surrender your capital, assume debt to leverage up cash flows, or engage in risky, dilutive acquisitions in order to grow, #Bitcoin offers a compelling solution to strengthen your balance sheet.https://t.co/KKmIJCobxR
— Michael Saylor⚡️ (@saylor) June 29, 2021
CleanSpark is not alone in using crypto assets to secure loans rather than relinquishing shares of the company since the CEO of Microstrategy Michael Saylor used the company’s BTC to secure a loan and buy more BTC. The news of the financing came a month after the company announced it will add 500 megawatts of mining power to the facility in Texas and it will be a gradual process with the company saying it expects to have added 50 MW by the end of the year and another 150 MW by the end of 2023. the company’s shares closed at $7.04 which is down by 11% ont the day while the NASDAQ composite finished by 4%.
It has been quite the rough start of the year for the BTC miner since the shares dropped by 26%. even with the Nasdaq Composite losing 21% in 2022, most publicly traded BTC miners fared worse like riot Blockchain which got down by 51%, Bitfarms which lost 45%, and HIvE that crashed by 41%.
Speaking of mining, Texas Fort Worth is a crypto-friendly city that will start mining Bitcoin by using three Bitmain Antiminer S9 mining rigs that were donated by the Texas Blockchain Council. The mayor believes that the operational cost can be offset by the mines that will be included in the city’s balance sheet. Mayor Mattie Parker holds quite the optimistic attitude toward the latest move into the crypto industry as she claims that the city will decide whether to invest real cash for the mine after the assessment occuring in six months.
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