CleanSpark, a bitcoin miner, raised $35 million in non-dilutive equipment financing on Tuesday.
Trinity Capital Inc. signed a three-year arrangement with the company, backed by 3,336 new S19j Pro miners and a 9.9% annual interest rate. CleanSpark will use the new funds to fund its growth capital expenditures. The company recently announced that it would increase mining capacity in west Texas by 200 megawatts until the spring of 2023, with the intention of eventually adding another 300 megawatts.
CleanSpark’s CFO, Gary Vecchiarelli, stated :
“We aim to continue our efforts to seek non-dilutive financing to finance our expansion capex needs. It’s important to note that we haven’t used our ATM since November. “
CleanSpark stated on its February earnings call that it wishes to raise financing through the issuance of rig-backed debt and that it is in ongoing talks with lenders. Other options include selling and/or yielding part of the company’s bitcoin (BTC) holdings.
The funding comes at a time when miners are looking for new ways to fund their operations, as capital markets remain constricted following the collapse of bitcoin prices last year. Miners have begun to use specialised bitcoin mining machines, known as ASICs, as collateral for loans in order to fund their expansion plans.
According to the release, CleanSpark presently possesses 23,000 “latest-generation” bitcoin mining rigs and is expecting the delivery of another 12,000.
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