Key Takeaway:
Analysts at H.C. Wainright are optimistic about CleanSpark’s recent acquisition of GRIID Infrastructure, projecting a potential upside to $27.
CleanSpark’s Acquisition of GRIID Infrastructure
CleanSpark, represented by CLSK, has entered into a definitive agreement to acquire GRIID Infrastructure (GRDI) in an all-stock deal valued at $155 million, aligning with initial estimates by H.C. Wainright. This acquisition is expected to accelerate CleanSpark’s development of power infrastructure.
Financial Details and Debt Assumption
CleanSpark will issue 5.2 million shares, equivalent to 2.5% of its total shares, to finalize the acquisition. Additionally, CleanSpark will absorb all of GRIID’s debt and financial obligations, including providing working capital and bridge loans for the transition.
CleanSpark’s Energy Growth Strategy
Despite the higher cost per megawatt, CleanSpark views GRIID’s energy pipeline in Tennessee as a valuable asset, with plans to expand its infrastructure capacity to over 1 GW by 2026 through the addition of data centers and other projects.
Closing and Future Plans
The acquisition is set to close in Q3 2024 pending GRIID shareholder approval. CleanSpark aims to bring online 100 MW by the end of 2024 and 200 MW by 2025, with a vision of expanding its total infrastructure capacity over the coming years.
