Bitcoin (BTC) mining giant CleanSpark has revealed plans to merge with rival GRIID in a $155 million deal. Let’s take a closer look.
CleanSpark announces merger with GRIID
On Thursday, the Bitcoin (BTC) mining giant CleanSpark has filed an agreement to acquire rival company GRIID for an amount of 155 million dollars.
To do this, the group will purchase all of GRIID's ordinary shares, while the company's shareholders will receive in exchange a number of CleanSpark shares calculated according to the amounts at stake.
Last April, CleanSpark announced that it had exceeded 17 EH/s hashrate, namely more or less 2.7% of the computing power deployed on the Bitcoin network last spring. With this merger, CleanSpark has unveiled new expansion plans to increase its production capacities.
💡 What is mining?
For the next 2 years, the company will add 400 megawatts of equipment in Tennessee, bringing all of its current new infrastructure projects to a total of 1 gigawatt. Zach Bradford, CEO of CleanSpark, commented on this timeline resulting from this merger:
We anticipate this will allow us to surpass 100 megawatts in Tennessee by the end of this calendar year and eventually increase that to 200 megawatts in 2025 before surpassing 400 megawatts in 2026. Every step of the way, we will continue to work with local communities to build infrastructure capable of powering up to a gigawatt of data center operations in Tennessee.
In parallel, CleanSpark will absorb all of GRIID's outstanding debts and also granted him loans totaling $55.9 million.
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Upon this announcement, GRIID's stock fell nearly 48% on the stock market to reach a price of $1.2, while that of CleanSpark remained stable at a price of $16.05.
For its part, the price of BTC is $61,500, up 1.5% over 24 hours.
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Source: CleanSpark
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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