Nasdaq-listed Bitcoin mining company CleanSpark has announced a $1.15 billion convertible note offering to accelerate its growth in both Bitcoin mining and artificial intelligence (AI) infrastructure.
The move comes amid a broader industry trend in which miners are diversifying their operations to offset post-halving pressures on profitability.
CleanSpark convertible note upsized to $1.15B
CleanSpark’s convertible note offering is structured as zero-coupon senior notes due in 2032, with an optional $200 million available for initial purchasers.
The company expects to generate roughly $1.13 billion in net proceeds, potentially rising to $1.28 billion if underwriters exercise their full options.
Of the proceeds, CleanSpark plans to allocate approximately $460 million to repurchase its common stock from investors, aiming to stabilise the stock amid recent volatility.
The share buyback price has been set at $15.03 per share, matching the Nasdaq closing price at the time of pricing.
The remaining funds from the convertible note will be used to expand CleanSpark’s Bitcoin mining operations, invest in AI-focused data centres, and repay existing Bitcoin-backed credit lines.
This dual approach reflects the company’s commitment to diversifying revenue streams while maintaining a strong balance sheet.
Notably, the convertible note structure provides flexibility to raise capital without immediately diluting shareholders, while also signalling confidence in long-term growth potential.
AI expansion complements Bitcoin mining growth
Beyond the financial manoeuvre, CleanSpark is actively investing in AI infrastructure, including a major new campus in Texas with a 285-megawatt capacity dedicated to high-performance computing (HPC).
The company has also partnered with Submer to explore liquid-cooled and prefabricated solutions for AI workloads.
According to Scott Garrison, CleanSpark’s chief development officer, Georgia has been identified as a strategic region for potential AI conversion and expansion, aligning with the company’s broader plan to repurpose excess mining infrastructure for digital computing operations.
The company’s Bitcoin mining capabilities remain strong, boasting a record-high operational hashrate of 50 exahashes per second (EH/s), making it one of the largest miners globally.
The combination of robust mining infrastructure and expanding AI operations positions CleanSpark to generate multiple revenue streams while navigating industry pressures following April’s Bitcoin halving, which cut block rewards by half and squeezed margins across the sector.
Market reaction and investor outlook
CleanSpark shares have experienced volatility in recent weeks, with the stock declining from above $23 in mid-October to around $15.03 at press time.
Part of this decline has been attributed to market dynamics and delta hedging related to the convertible note offering.
Nonetheless, the company’s executives remain confident that the mix of share repurchases, AI infrastructure investment, and debt reduction will strengthen the stock over time.
Other major miners, such as Core Scientific and IREN, have also successfully integrated AI and HPC capabilities into their operations.
By taking this path, CleanSpark aims to ensure long-term resilience, balancing profitability from Bitcoin mining with emerging opportunities in AI and high-performance computing.
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