These Two Bitcoin Miners from Wall Street Secure Major Financing as BTC Hits $108K

Leading US publicly-listed
Bitcoin (BTC) miners from Wall Street are strengthening their financial
positions through significant capital raises as Bitcoin trades above $108,000.
Industry heavyweights CleanSpark (NASDAQ: CLSK) and Bitfarms
(NASDAQ: BITF)
announced major financial moves to fuel their expansion plans.

CleanSpark Raises $650
Million in Zero-Coupon Note Sale

CleanSpark
has secured a landmark $650 million zero-coupon convertible senior notes
offering, implementing financial engineering to protect shareholder interests.

https://t.co/eGYTK4x5eS

— CleanSpark Inc. (@CleanSpark_Inc) December 17, 2024

The company
structured the deal with capped call transactions at $24.66 per share,
representing a 100% premium over its closing price. To further enhance
shareholder value, CleanSpark executed a share repurchase program, buying back
11.76 million shares for approximately $145 million.

“We
are proud to have closed this offering with some of the strongest institutional
investors in the world and are excited to share that our growth through 50 EH/s
and beyond is now expected to be more than fully funded from the
proceeds,” said Zach Bradford, CEO and President. “In addition to
funding the growth to 50 EH/s, share buyback, and capped call, the additional
capital will allow us to keep adding the bitcoin we mine to our balance sheet.”

Bitfarms’ Equity Program
Progress

Bitfarms
has taken a different approach to capital raising, filing an updated prospectus
supplement for its ongoing at-the-market equity program. The company has
already successfully raised $288 million through the distribution of 128.8
million common shares, with $87 million still available under the program.

The fresh
capital is earmarked for expanding existing mining operations and strengthening
working capital positions.

In the
meantime, another publicly listed Bitcoin miner, Riot Platforms (NASDAQ: RIOT)
finalized loan deal to continue its BTC purchasing strategy. The company closed
a $594.4 million offering of 0.75% convertible senior notes due in 2030.

Strategic Timing Amid
Bitcoin’s Price Discovery

These
financial maneuvers come at a crucial moment as Bitcoin enters a new price
discovery phase reaching $108,000. Mining companies are capitalizing on
favorable market conditions to secure their competitive positions in the
evolving digital asset landscape.

The timing
of these raises reflects the industry’s confidence in Bitcoin’s long-term
prospects and the need for operational scale to maintain profitability in an
increasingly competitive mining environment.

The results
are plain to see. Profits from cryptocurrency mining have
just reached a seven-month high, with US-listed companies now controlling
nearly 30% of the global network hashrate. However, higher prices also mean
increased competition and greater mining difficulty. While BTC continues to
rise, miners
are able to mine fewer coins with the same computing power.

This article was written by Damian Chmiel at www.financemagnates.com.