CleanSpark Uses Bitcoin as Collateral, Not Currency, to Fund Growth

CleanSpark, Inc. (Nasdaq: CLSK) has secured a $100 million credit facility with Coinbase Prime, leveraging its Bitcoin holdings as collateral to fund strategic growth without diluting equity or liquidating its digital asset reserves. The financing, announced on September 22, 2025, marks the latest phase of a broader partnership with Coinbase, which has now provided CleanSpark with a total of $300 million in Bitcoin-backed financing since earlier in 2025CleanSpark Shares Surge 6% After Landing $100M Bitcoin-Backed …^[2]CleanSpark Secures $100M Bitcoin-Backed Loan from Coinbase …^[4]. The company’s Bitcoin treasury currently holds approximately 12,827 BTC, with 3,026 BTC pledged as collateral for prior loans. The new facility will be used to expand CleanSpark’s energy portfolio, scale Bitcoin mining operations, and invest in high-performance computing (HPC) infrastructureCleanSpark Shares Rise After Getting $100M Bitcoin-Backed^[1]CleanSpark Shares Surge 6% After Landing $100M Bitcoin-Backed …^[2].

The non-dilutive approach aligns with CleanSpark’s capital strategy, which prioritizes preserving shareholder value while maximizing the utility of its Bitcoin holdings. Gary A. Vecchiarelli, CFO and President, emphasized that the company’s “Infrastructure First” strategy has historically enhanced shareholder returns and will further diversify revenue streams beyond Bitcoin miningCleanSpark Shares Rise After Getting $100M Bitcoin-Backed^[1]CleanSpark Shares Surge 6% After Landing $100M Bitcoin-Backed …^[2]. The funds will also support the development of HPC campuses, particularly in locations near major metropolitan areas, to capitalize on demand for artificial intelligence and enterprise cloud servicesCleanSpark Expands $100M Bitcoin-Backed Credit Facility^[5]. CleanSpark’s Chief Business Officer, Harry Sudock, noted that versatility in asset utilization—such as repurposing data centers for HPC—creates “opportunity maximization” and strengthens long-term growth potentialCleanSpark Shares Surge 6% After Landing $100M Bitcoin-Backed …^[2].

The announcement triggered a 5–7% surge in CleanSpark’s stock price in after-hours trading, with shares rising from $13.74 to $14.44–$14.60CleanSpark Shares Rise After Getting $100M Bitcoin-Backed^[1]CleanSpark secures $100 million Bitcoin-backed loan^[3]. This follows a record-breaking third quarter for the company, which reported $198.6 million in revenue and mined 657 BTC in August 2025, a 37.5% year-over-year increaseCleanSpark Shares Surge 6% After Landing $100M Bitcoin-Backed …^[2]CleanSpark Secures $100M Bitcoin-Backed Loan from Coinbase …^[4]. CleanSpark’s operational hashrate reached 50.0 EH/s as of August 2025, with plans to expand further through new megawatt contracts and infrastructure deployments. The company’s recent $200 million credit facility with Coinbase in April 2025 laid the groundwork for this latest funding round, underscoring its disciplined approach to capital allocation.

CleanSpark’s pivot into HPC reflects a broader industry trend, with Bitcoin miners increasingly diversifying into energy-intensive computing sectors. The company’s leadership transition has accelerated this strategy, with CEO Matt Schultz highlighting the potential to “optimize assets” for alternative use casesCleanSpark Expands $100M Bitcoin-Backed Credit Facility^[5]. The move also aligns with Coinbase Institutional’s role as a key partner in digital asset financing, as Brett Tejpaul, Head of Coinbase Institutional, noted the collaboration strengthens the crypto ecosystem through “secure, regulated infrastructure”CleanSpark Expands $100M Bitcoin-Backed Credit Facility^[5].

Analysts and investors appear to endorse the strategy. The financing announcement coincides with CleanSpark’s stock gaining over 30% in five trading days, signaling confidence in its non-dilutive growth modelCleanSpark Expands $100M Bitcoin-Backed Credit Facility^[5]. By avoiding equity raises and Bitcoin sales, CleanSpark maintains exposure to potential price appreciation while expanding its operational footprint. The company’s approach also mitigates risks associated with Bitcoin’s price volatility, a critical factor in an industry marked by rapid technological and market shiftsCleanSpark Secures $100M Bitcoin-Backed Loan from Coinbase …^[4].