CleanSpark Finalizes $35 Million in Financing from Trinity Capital
April 26 2022 - 09:00AM
CleanSpark, Inc. (Nasdaq: CLSK) (the "Company" or "CleanSpark"), a
sustainable bitcoin mining and energy technology company, today
announced that it has finalized $35 million in non-dilutive
financing from Trinity Capital Inc., (Nasdaq: TRIN) ("Trinity"), a
provider of venture debt financing. The three-year equipment
financing agreement is backed by 3,336 new S19j Pro miners and
carries an annual interest rate of 9.9%.
CleanSpark intends to use the proceeds from the facility for
growth capital expenditures. Currently, CleanSpark has a fleet of
over 23,000 latest-generation bitcoin mining machines in operation,
with approximately 12,000 machines pending delivery and deployment
in batches through October 2022.
“As we mentioned in our Q1 earnings call, debt capital is
currently the lowest cost of capital available to the Company,”
said Gary Vecchiarelli, CFO of CleanSpark. “This non-dilutive
facility is an example of us delivering on our capital strategy and
the expectations we have previously communicated. We intend to
continue our efforts of obtaining non-dilutive capital to finance
our growth capex needs. It is worth noting that we have not drawn
on our ATM since November.”
“We are excited to partner with the team at CleanSpark, which is
on a mission to mine bitcoin responsibly, using a mix of
sustainable energy including nuclear, hydroelectric, solar, and
wind,” said Ryan Little, Managing Director of Equipment Financing
at Trinity Capital. “Cleanspark is an excellent addition to our
portfolio and recently earned a spot among the top 50
fastest-growing companies on a Financial Times’ list. We look
forward to being a part of their growth story.”
The financing is intended to strengthen CleanSpark’s sustainable
business strategy whereby the Company converts some of its bitcoin
(BTC) holdings to fund operations and expansion, with a goal of
limiting shareholder dilution and stably maximizing returns for
shareholders.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). All statements other than
statements of historical facts contained in this press release may
be forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“targets,” “projects,” “contemplates,” “believes,” “estimates,”
“forecasts,” “predicts,” “potential” or “continue” or the negative
of these terms or other similar expressions. Forward-looking
statements contained in this press release include, but are not
limited to, statements regarding our future results of operations
and financial position, including the use of proceeds from the
loan, the availability and delivery of new mining equipment,
industry and business trends, our business and financial/capital
strategy, market growth and our objectives for future
operations.
The forward-looking statements in this press release are only
predictions. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our business, financial
condition and results of operations. Forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to: the
success of its digital currency mining activities; the volatile and
unpredictable cycles in the emerging and evolving industries in
which we operate, increasing difficulty rates for bitcoin mining;
bitcoin halving; new or additional governmental regulation; the
anticipated delivery dates of new miners; the ability to
successfully deploy new miners; the dependency on utility rate
structures and government incentive programs; the successful
deployment of energy solutions for residential and commercial
applications; the expectations of future revenue growth may not be
realized; ongoing demand for the Company's software products and
related services; the impact of global pandemics (including
COVID-19) on logistics and shipping and the demand for our products
and services; and other risks described in the Company's prior
press releases and in its filings with the Securities and Exchange
Commission (SEC), including under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K and any subsequent filings
with the SEC. The forward-looking statements in this press release
are based upon information available to us as of the date of this
press release, and while we believe such information forms a
reasonable basis for such statements, such information may be
limited or incomplete, and our statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of, all potentially available relevant information. These
statements are inherently uncertain and investors are cautioned not
to unduly rely upon these statements.
You should read this press release with the understanding that
our actual future results, performance and achievements may be
materially different from what we expect. We qualify all of our
forward-looking statements by these cautionary statements. These
forward-looking statements speak only as of the date of this press
release. Except as required by applicable law, we do not plan to
publicly update or revise any forward-looking statements contained
in this press release, whether as a result of any new information,
future events or otherwise.
About CleanSpark
CleanSpark, Inc. (Nasdaq: CLSK), a Nevada corporation, is a
sustainable bitcoin mining and energy technology company that is
solving modern energy challenges. For more information about the
Company, please visit the Company's website at
https://www.cleanspark.com/investor-relations.
Investor Relations Contact
Matt Schultz, Executive Chairmanir@cleanspark.com
Media Contacts
Isaac Holyoakpr@cleanspark.com
BlocksBridge ConsultingNishant
Sharmacleanspark@blocksbridge.com
Isaac Holyoak
CleanSpark, Inc.
702-989-7694
pr@cleanspark.com
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