Bitcoin miner CleanSpark saw a 10% drop in after-hours trading following an update to its stock offering agreement, now aiming to sell up to $800 million of its stock.
This move, common among public companies, aims to raise capital. CleanSpark’s initial $500 million offering with H.C. Wainwright & Co allowed for periodic sales at $0.001 per share.
Similar strategies were adopted by Riot Platforms and Marathon Digital Holdings last year. The proposed $800 million offering would dilute CleanSpark’s shares by 19%, given its $4.2 billion market cap.
CleanSpark is gearing up for the Bitcoin halving on April 20, which will reduce mining rewards. It boasts the lowest post-halving production cost of $26,900 per Bitcoin. Plans to double its hash rate by mid-2024 were announced, fueled by new mining facilities in Mississippi and Georgia.
CleanSpark is gearing up for the Bitcoin halving event on April 20, reducing mining rewards from 6.25 BTC to 3.125 BTC. They anticipate doubling their hash rate post-halving with new mining facilities in Mississippi and Georgia, costing $19.8 million and $6.9 million, respectively.
Despite starting at $23.20, CLSK fell 16% to $19.1 after-hours, part of an 8.2% daily decline.
Also Read: Fox Business Analyzes Bitcoin Halving’s Market Impact
