Bitcoin News Today: Bitcoin Miner CleanSpark's $1.15B Pivot to AI Amid Crypto Turmoil

Bitcoin Miner CleanSpark Taps $1.15B Notes Offering to Fuel Growth and Buybacks

CleanSpark, Inc. (Nasdaq: CLSK), a leading U.S. Bitcoin miner, has priced a $1.15 billion convertible notes offering to fund expansion, share repurchases, and debt repayment, marking a significant step in its capital-raising strategy amid a volatile crypto market. The zero-coupon convertible senior notes, due 2032, carry a 27.5% conversion premium over the company's closing stock price of $15.03 on Nov. 10, according to a Blockonomi report. The offering, upsized from an initial $1 billion proposal, reflects strong institutional demand and will mature on Feb. 15, 2032, unless converted, redeemed, or repurchased earlier, as noted in the Seeking Alpha filing.

The company plans to allocate approximately $460 million of the net proceeds to repurchase shares from investors participating in the notes offering, effectively stabilizing shareholder value while reducing dilution risks, as reported in the Blockonomi report. Remaining funds will support the expansion of CleanSpark's power and land portfolio, development of data center infrastructure, and repayment of outstanding Bitcoin-backed credit lines, as described in the AI Journal filing. The notes, which do not accrue regular interest, are convertible into cash, shares, or a combination of both at the company's discretion, according to the StockTitan filing. Underwriters retain a 13-day option to purchase an additional $150 million in notes, potentially boosting total proceeds to $1.28 billion, as noted in the Blockonomi report.

The announcement sent CleanSpark's shares reeling in after-hours trading, with the stock dropping 6.3% to $14.09, according to the TradingView report. Analysts attribute the decline to market skepticism over the company's aggressive debt issuance, despite a 63% year-to-date gain in share price, as noted in the Reuters report. Institutional ownership data reveals a mixed picture: while some large funds like IJR and VTSMX increased allocations to CleanSpark, others, such as IWM, reduced holdings, as detailed in the Nasdaq report. The average one-year price target for CleanSpark remains at €19.92 ($19.92), a 14.41% decrease from October 2025 estimates, as reported in the Nasdaq report.

CleanSpark's move underscores its pivot toward high-performance computing (HPC) and AI data center infrastructure, a strategic shift announced in late 2024, as described in the Cryptopolitan report. The company has already hired industry veteran Jeffrey Thomas to lead its AI data center initiatives and is positioning Georgia as a key hub for its expansion, according to the Cryptopolitan report. This diversification comes as Bitcoin mining revenues face headwinds from declining hash rates and regulatory uncertainties, pushing miners to monetize their energy-efficient infrastructure for alternative workloads, as noted in the Cryptopolitan report.

The convertible notes are being offered privately to qualified institutional buyers under Rule 144A of the Securities Act, with no public registration, as noted in the AI Journal filing. CleanSpark emphasized that the offering remains subject to market conditions and regulatory approvals, with a closing expected on Nov. 13, according to the StockTitan filing.