CleanSpark stock crashed during the after-hours trading session on Thursday. The conference details an adjustment in the company’s at-the-market (ATM) offering agreement alluded to. The Company announced that it would have the right to sell up to $800 million in stock, while the agreement previously signed with H.C. Wainwright & Co. the selling for $500 million was done on January 5, 2024.
Amendment to ATM offering agreement
CleanSpark disclosed a revised ATM offering agreement in which they had the Securities and Exchange Commission on March 28, 2023. With this restructuring, the corporation now has the legal rights to create and sell its shares of common stock at $0.001 per share. CleanSpark is one of the miners doing this alongside others, including Riot Platforms and Marathon Digital Holdings, by using this vital agreement to make capital.
It took only some seconds to see the stock of CleanSpark down by a huge margin when it fell 16% and closed at $19.1 after the news was made available for after-hours trade. The drop inflated with dusk had a speed of 8.2% percent, and the bots’ hindrance during regular stock market times surpassed with data from Google Finance. The trading capitalization on the current market amounts to $4.2 billion; the $800 million proposed stock offering is intended to reduce the number of owners, leading to 19% dilutions.
Poise before the Bitcoin halving
The organization’s setup for the Bitcoin epoch, as indicated by the strategic decisions to clean a rock, comes along with the preparation for the halving event that will be experienced in April. In this event, the miners will be paid half of their reward for the contributions to the system, resulting in 3.125 BTC ($220,500) instead of the previous 6.25 BTC ($441,000). Moreover, Clean Spark has a post-halving cost structure in Bitcoin mining that is the lowest among miners, as indicated in the Jan. 12 study by CoinShares, which is calculated at $26,900.
The CleanSpark team has vigorously built a bigger enterprise to prepare for the up-and-coming halving event. The company said on Thursday, outlining the plan to double its hash rate over the next six months, that it has agreed to purchase four new mining facilities, which retail for about $19.8 million, in Mississippi. With these facilities, the mine increased its capacity by 2.4 EH/s.
To that effect, CleanSpark also intended to get hold of another Dalton, Georgia facility for $6.9 million. Yet, according to the company’s plan, it is a fresh production that will be operational in April 2024, and its hash rate will be equal to 0.8 EH/s.
