The post CleanSpark acquiring GRIID Infrastructure in $155m all-stock deal appeared on BitcoinEthereumNews.com.

CleanSpark Inc. (CLSK) has announced a merger agreement to acquire GRIID Infrastructure in an all-stock transaction valued at $155 million.  This acquisition includes the payment and assumption of GRIID’s (GRDI) debt. As part of the agreement, CleanSpark and GRIID have entered into an exclusive hosting agreement, allocating 20 MW of power to CleanSpark immediately. The merger received unanimous approval from the Boards of Directors of both companies. It is anticipated to be finalized in the third quarter of 2024, subject to GRIID shareholder approval and other standard conditions. Agreement terms Under the terms, GRIID stockholders will receive shares of CleanSpark common stock. The formula is based on an exchange ratio determined by the aggregate merger consideration. The merger accounts for GRIID’s outstanding liabilities and a $16.587 per share valuation of CleanSpark’s common stock. CleanSpark’s stock is currently trading at $16.35 per share.  CleanSpark is taking on all of GRIID’s debt and other responsibilities. To help GRIID during the transition, CleanSpark has given a $5 million working capital loan and a $50.9 million pay-down bridge loan. These loans are secured and have seniority over GRIID’s other debts. Zach Bradford, CEO of CleanSpark, expressed enthusiasm for the merger, highlighting 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.”  Bradford also noted plans to exceed 100 MW in Tennessee by the end of 2024 and to grow to 200 MW in 2025 and over 400 MW by 2026. GRIID’s tumultuous stock movement  Griid was a vertically integrated Bitcoin (BTC) mining company that owned energy infrastructure and high-density data centers in North America, mainly in Tennessee. The company stock has had a tumultuous week.  GRDI…

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Filed under: News - @ June 29, 2024 10:10 am