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CleanSpark Inc. (CLSK) entered into a merger agreement on June 27, 2024, to acquire GRIID Infrastructure Inc. (GRDI) in an all-stock deal valued at $155 million.
This merger agreement stipulates that GRIID stockholders will receive 0.0631 of a share of CleanSpark common stock at $1.01, representing a discount of 56.84% based on GRIID’s last close, and a 16.09% premium over the 30-day average of GRIID’s stock.
GRIID, a Cincinnati-based bitcoin mining company founded in 2018, operates mining facilities across New York and Tennessee, leveraging affordable, reliable, and environmentally responsible power for its vertically integrated self-mining business model.
CleanSpark Inc. is a Bitcoin mining company that runs data centers in Georgia with a total capacity of 230 megawatts. It operates low-carbon-powered data centers in the Americas, supporting Bitcoin for financial independence and inclusion.
The companies also entered an exclusive hosting deal, under which CleanSpark will immediately get 20 MW of the currently available power from GRIID.
Through this deal, which is expected to close in the third quarter of 2024, CleanSpark expects to grow in Tennessee.
“We anticipate to exceed 100 megawatts in Tennessee by the end of 2024 and eventually grow that to 200 megawatts in 2025 before exceeding 400 megawatts in 2026”, CleanSpark’s CEO Zach Bradford said.
CleanSpark will assume GRIID’s outstanding debt and obligations in the merger. It has provided GRIID with a $5 million working capital loan, and a $50.9 million secured, senior pay-down bridge loan. GRIID’s current Price/Sales (TTM) ratio is 6.54, above the sector median of 2.98.
For more in-depth information about this merger, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of GRIID Infrastructure Inc. (GRDI) by CleanSpark Inc. (CLSK)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
Disclaimer: This article is for informational purposes only. Please conduct your own due diligence before buying or selling any securities mentioned in this article. The completeness or accuracy of the content or data provided in this article is not warranted.
Editor’s Note: Baranjot Kaur contributed to this article