CleanSpark Finalizes Acquisition of GRIID Infrastructure, Expands Bitcoin Mining Capacity
CleanSpark's Strategic Expansion in Bitcoin Mining
CleanSpark, Inc. (Nasdaq: CLSK), a leading player in the Bitcoin mining sector, has successfully completed its acquisition of GRIID Infrastructure Inc. (Nasdaq: GRDI). This significant transaction, finalized on October 30, 2024, follows the approval by GRIID's stockholders during a special meeting held on October 28, 2024, according to investors.cleanspark.com.
Enhancing Capacity and Geographic Reach
The acquisition marks a strategic move for CleanSpark as it aims to expand its Bitcoin mining capacity to over 400 megawatts (MW) in Tennessee. This expansion is set to enhance CleanSpark's geographic and power supply diversity, providing increased operational flexibility through the Tennessee Valley Authority (TVA) service territory. Zach Bradford, CEO of CleanSpark, expressed enthusiasm about the integration of GRIID's team and assets, highlighting the smooth transition and potential for growth.
Support from Local and National Leaders
The acquisition has been well-received by local and national leaders, including U.S. Senator Bill Hagerty, who welcomed CleanSpark's expansion in Tennessee. The state has become a burgeoning hub for America's Bitcoin industry, offering a competitive workforce and reliable power, thanks to TVA.
Positive Outlook for Combined Operations
GRIID's former CEO, Trey Kelly, noted that the merger represents a positive outcome for GRIID's shareholders and employees, acknowledging the potential for CleanSpark to maximize the value of GRIID's power pipeline. The merger agreement, initially announced on June 27, 2024, involved the conversion of GRIID common stock into shares of CleanSpark common stock, enhancing shareholder value.
Market and Regulatory Implications
Following the transaction's completion, GRIID requested the suspension of its common stock and public warrants trading on Nasdaq, with delisting from Cboe Canada scheduled by the end of October 31, 2024. Legal counsel for the transaction was provided by Cozen O'Connor P.C. for CleanSpark and Troutman Pepper Hamilton Sanders LLP for GRIID.
CleanSpark continues to position itself as a leader in sustainable Bitcoin mining, operating data centers powered by low-carbon energy. This acquisition aligns with its mission to enhance financial independence and inclusion through responsible Bitcoin mining practices.