CleanSpark Inc. stock extended its bullish momentum last week and checked Highter Monday after announcing its Bitcoin-backed credit line at Coinbase Prime.
The Las Vegas-based mining company closed its regular trading at $13.74, but rose more than 8% outside of business hours, reaching $14.86 following the news of the transaction. The stock is currently up 6% and is trading nearly $14.60.
CleanSpark tapped an additional $100 million in credits backed by the Bitcoin Reserve. Instead of selling coins in the market, the company is leaning towards Bitcoin Holding as collateral. This is essentially a strategy to turn mined Bitcoin into a working asset.
For shareholders, it means that they can cover growth without issuing new shares, providing a non-diluted way to maintain scaling.
CleanSpark uses Bitcoin as collateral for the company
CleanSpark uses Bitcoin Holding more frequently to raise capital. This is a strategy that is becoming increasingly common among publicly traded miners.
Essentially, by listing Bitcoin as collateral, companies holding Bitcoin are still exposed to the potential potential of their assets while releasing cash that actually works.
“This expansion with Coinbase Prime will allow us to fund growth without sacrificing shareholder stakes or liquidating Bitcoin,” said CEO and Chairman Matt Schultz. “We see great opportunities to prepare selected data centers for high-performance computing applications while accelerating mining growth.”
CleanSpark said revenue will be directed towards efforts such as expanding its energy portfolio, scaling Bitcoin mining operations, and building high-performance computing capabilities.
This includes converting some facilities near the Metro Center into a diverse computing campus. There, demand for AI and cloud services is rapidly increasing. That approach has gained traction as competition heats up among US-based miners. In particular, CleanSpark relies on energy expansion and efficiency to stay ahead of the pack.
The company also shows its willingness to fork beyond mining into other forms of computing, a sign of flexibility as the industry evolves.
Brett Tejpaul, who heads Coinbase Institutional, described Cleanspark’s latest capital strategy as “an important step forward in growing the crypto ecosystem through intensive capital deployment.”
He highlighted the role of Coinbase Prime, providing the custody and credit infrastructure behind the transaction.
Market data shows CleanSpark’s shares have grown 33% over the past five days.
Source: https://bitcoinmagazine.com/news/cleanspark-stock-jumps-after-securing-100m-bitcoin-backed-credit-line-from-coinbase
