On Tuesday, the bitcoin mining and energy technology firm Cleanspark announced that it has secured $35 million in non-dilutive financing from Trinity Capital. According to the company, Cleanspark aims to leverage the funds for growth capital expenditures.

Cleanspark to Bolster Growth Expenditures With $35 Million in Financing From Trinity Capital

Cleanspark has revealed it has finalized a $35 million finance deal with the venture debt financing provider Trinity Capital in order to fuel the company’s growth. The financing deal follows Cleanspark’s recent Texas expansion in March, as the company announced plans to expand operations in the Lone Star state with 500 megawatts (MW) of renewable power.

According to Cleanspark, the three-year financing deal with Trinity Capital is “backed by 3,336 new S19j Pro miners and carries an annual interest rate of 9.9%.” “As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the company,” Gary Vecchiarelli, CFO of Cleanspark, said in a statement. The Cleanspark executive added:

This non-dilutive facility is an example of us delivering on our capital strategy and the expectations we have previously communicated. We intend to continue our efforts of obtaining non-dilutive capital to finance our growth capex needs. It is worth noting that we have not drawn on our ATM since November.

Financing to Fuel Expansions and Operations While Maximizing Returns for Shareholders

Cleanspark considers itself a sustainability-focused bitcoin mining company and the “financing is intended to strengthen Cleanspark’s sustainable business.” The firm will convert some bitcoin (BTC) holdings in order to fund expansions and operations “with a goal of limiting shareholder dilution and stably maximizing returns for shareholders.”

During the last year, Cleanspark has been acquiring miners and making a number of business moves including starting a 20 MW immersion cooling initiative last December. Ryan Little, the managing director of equipment financing at Trinity Capital, explained during the announcement that the company looks forward to working with Cleanspark.

“We are excited to partner with the team at Cleanspark, which is on a mission to mine bitcoin responsibly, using a mix of sustainable energy including nuclear, hydroelectric, solar, and wind,” Little remarked. “Cleanspark is an excellent addition to our portfolio and recently earned a spot among the top 50 fastest-growing companies on a Financial Times list. We look forward to being a part of their growth story.”

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