Bitcoin Mining Company CleanSpeak Set to Purchase Competitor GRIID in $155 Million Agreement

CleanSpark, a sustainability-focused Bitcoin miner, recently announced a merger with Griid Infrastructure, acquiring all of Griid’s common shares for $155 million. This move caused Griid Infrastructure’s share price to drop by 49% to $1.20, although the stock had rallied 55% over the past month.

As part of the merger, CleanSpark will gain access to 20 megawatts of Griid’s power, potentially expanding its power capacity by over 400 MW in the next two years. CleanSpark’s CEO, Zach Bradford, highlighted the alignment between Griid’s energy infrastructure in Tennessee and CleanSpark’s presence in Georgia and Mississippi, emphasizing a community-first approach.

The merger also involves CleanSpark assuming Griid’s outstanding debt, providing $5 million in working capital and a bridge loan of around $50.9 million to support Griid during the transition period. Griid, established in 2018, operates mining facilities in New York and Tennessee, with a focus on building data centers in local communities.

In the context of Bitcoin miners adapting to the recent halving event, mergers and acquisitions have become more prevalent. Bitfarms, a Canadian mining firm, recently faced a hostile takeover attempt by Riot Platforms but managed to fend it off. In contrast, CleanSpark and Griid’s boards have unanimously agreed to the merger terms, expected to close in the third quarter of this year.

CleanSpark’s stock price remained relatively stable amid the merger announcement. The consolidation reflects the evolving landscape for Bitcoin miners post-halving, where profitability challenges have led to strategic shifts within the industry.