CleanSpark Acquires GRIID for $155M, Expands 400 MW in Tennessee

CleanSpark is acquiring GRIID Infrastructure in a $155 million all-stock deal, aiming to add over 400 MW of capacity in Tennessee within the next two years.
CleanSpark Acquires GRIID for $155M, Expands 400 MW in Tennessee
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Key Takeaways

  • CleanSpark has partnered with GRIID to expand its infrastructure.
  • The deal is valued at $155 million and includes debt assumption.
  • CleanSpark aims to add over 400 MW in Tennessee within two years.

CleanSpark Inc. (Nasdaq: CLSK) has entered into a definitive merger agreement to acquire GRIID Infrastructure Inc. (Nasdaq: GRDI) in an all-stock transaction valued at $155 million. The deal will include the assumption of GRIID’s debt and is set to significantly expand CleanSpark’s capacity in Tennessee by over 400 MW within the next two years.

The merger will see GRIID stockholders receiving shares of CleanSpark common stock based on an exchange ratio determined by the aggregate merger consideration, which includes GRIID’s liabilities. Additionally, CleanSpark has provided GRIID with a $5 million working capital loan and a $50.9 million bridge loan to cover certain obligations.

Zach Bradford, CEO of CleanSpark, expressed enthusiasm for the acquisition, stating:

We are excited to apply the CleanSpark way to GRIID’s impressive pipeline in Tennessee, providing a clear and steady path to accomplish our goals over the next three years.

He added that the company aims to exceed 100 MW in Tennessee by the end of this year, growing to 200 MW in 2025, and over 400 MW by 2026.

Trey Kelly, CEO of GRIID, also voiced his excitement, highlighting the shared vision and values between the companies. He said,

Joining CleanSpark makes for an ideal business combination.

The acquisition will enable rapid growth in the Tennessee Valley, leveraging both companies’ strengths.

The transaction, approved unanimously by both companies’ boards, is expected to close in the third quarter of 2024, subject to GRIID shareholder approval and other customary conditions.

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