Cleanspark, a bitcoin mining and technology company, announced Tuesday that Trinity Capital had provided $35 million of non-dilutive financing. Cleanspark stated that it plans to use the money to fund growth capital expenditures.
Cleanspark to Boost Growth Investments with $35 Million Financing from Trinity Capital
Cleanspark has revealed it has finalized a $35 million finance deal with the venture debt financing provider Trinity Capital in order to fuel the company’s growth. The financing deal follows Cleanspark’s recent Texas expansion in March, as the company announced plans to expand operations in the Lone Star state with 500 megawatts (MW) of renewable power.
According to Cleanspark, the three-year financing deal with Trinity Capital is “backed by 3,336 new S19j Pro miners and carries an annual interest rate of 9.9%.” “As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the company,” Gary Vecchiarelli, CFO of Cleanspark, said in a statement. Cleanspark’s executive said:
The non-dilutive facility shows that we are delivering on the capital strategy and expectations we communicated previously. Our efforts to obtain non-dilutive cash to fund our capex growth needs will be continued. We have not used our ATM since November.
Financial financing to finance expansions and operations while maximising returns for shareholders
Cleanspark considers itself a sustainability-focused bitcoin mining company and the “financing is intended to strengthen Cleanspark’s sustainable business.” The firm will convert some bitcoin (BTC) holdings in order to fund expansions and operations “with a goal of limiting shareholder dilution and stably maximizing returns for shareholders.”
Cleanspark acquired miners last year and made a variety of business moves, including launching a 20-MW immersion cooling project last December. Ryan Little, Trinity Capital’s managing director of equipment finance, stated during the announcement that Trinity Capital is looking forward to working alongside Cleanspark.
“We are excited to partner with the team at Cleanspark, which is on a mission to mine bitcoin responsibly, using a mix of sustainable energy including nuclear, hydroelectric, solar, and wind,” Little remarked. “Cleanspark is an excellent addition to our portfolio and recently earned a spot among the top 50 fastest-growing companies on a Financial Times list. We look forward to being a part of their growth story.”
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