CleanSpark Acquires GRIID Infrastructure in $155M All-Stock Deal

Bitcoin mining company CleanSpark has announced the acquisition of GRIID Infrastructure in an all-stock deal valued at $155 million. This acquisition will see CleanSpark assuming all debt and obligations of GRIID, providing a $5 million loan, and increasing CleanSpark's mining capacity in Tennessee. The deal has been approved by both companies' boards and is expected to close in the third quarter of 2024.

The news of the acquisition has caused GRIID shares to plummet over 50%, while CleanSpark shares have risen nearly 4%, suggesting the deal might be perceived as a fire sale by some traders.

This acquisition comes amid a wave of mergers and acquisitions in the Bitcoin mining industry, driven by the recent halving event and increased competition. Other recent deals include Riot Platforms and Bitfarms engaging in a hostile takeover attempt, and Core Scientific being pursued by a cloud computing company.

CleanSpark aims to exceed 100 MW capacity in Tennessee by year-end, expand to 200 MW next year, and further increase to over 400 MW in 2026. The acquisition also includes a hosting agreement where 20 MW of power capacity will be allocated to CleanSpark.

This deal highlights the continued consolidation and expansion in the Bitcoin mining industry, as companies seek to gain a competitive edge and leverage economies of scale.