CleanSpark Inc. (CLSK) has recently announced its plans to acquire GRIID Infrastructure in a merger agreement valued at $155 million. This all-stock transaction includes the assumption of GRIID’s debt (GRDI). As part of the agreement, CleanSpark and GRIID have also entered into an exclusive hosting agreement, with CleanSpark immediately receiving an allocation of 20 MW of power.
The merger has received unanimous approval from the Boards of Directors of both companies and is expected to be finalized in the third quarter of 2024, pending GRIID shareholder approval and other standard conditions.
Under the terms of the agreement, GRIID stockholders will receive shares of CleanSpark common stock based on an exchange ratio determined by the aggregate merger consideration. The merger takes into account GRIID’s outstanding liabilities and values CleanSpark’s common stock at $16.587 per share, while CleanSpark’s current stock price stands at $16.35 per share.
CleanSpark will be assuming all of GRIID’s debt and other responsibilities. To support GRIID during the transition, CleanSpark has provided a $5 million working capital loan and a $50.9 million pay-down bridge loan. These loans are secured and hold seniority over GRIID’s other debts.
Zach Bradford, CEO of CleanSpark, expressed excitement about the merger, emphasizing the potential for rapid growth in Tennessee. Bradford stated, “This acquisition gives us a clear and steady path to accomplish in Tennessee what we proudly achieved in Georgia—building over 400 MW of infrastructure backed by long-term power contracts.” He also outlined plans to surpass 100 MW in Tennessee by the end of 2024, reach 200 MW in 2025, and ultimately expand to over 400 MW by 2026.
GRIID, a vertically integrated Bitcoin (BTC) mining company, owns energy infrastructure and high-density data centers primarily located in Tennessee. The company’s stock has experienced significant volatility recently. Starting the week at $1.17 per share, it rose over 150% in just three days, reaching prices above $3 per share on Wednesday. However, following the announcement of the acquisition, the stock price has dropped back to $1.20 per share.
GRIID operates bitcoin mining data centers across Tennessee, with support from the Tennessee Valley Authority. In addition to its facilities in Tennessee, GRIID also has operations in Watertown, New York, as well as various locations in Ohio and Texas.