Bitcoin News Today: CleanSpark's AI Push Counters Bitcoin Mining's Post-Halving Woes

CleanSpark, the second-largest Bitcoin mining company by hashrate, has announced a $1.15 billion senior convertible note offering to accelerate its expansion into artificial intelligence (AI) infrastructure and bolster its Bitcoin mining operations. The move underscores a broader industry shift as miners seek to diversify revenue streams amid post-halving pressure and volatile crypto markets according to reports.

The offering, maturing in 2032, is expected to generate $1.13 billion in net proceeds, or up to $1.28 billion if underwriters fully exercise their $150 million greenshoe option according to reports. CleanSpark plans to allocate $460 million of the proceeds to repurchase common stock at $15.03 per share, a price matching its Nasdaq closing value on Nov. 10 according to reports. The remaining funds will expand the firm's power and land portfolio, develop AI data centers, repay Bitcoin-backed credit lines, and cover general corporate expenses according to market analysis.

This capital raise follows a similar $550 million convertible note offering in December 2024 according to reports. CleanSpark's strategic pivot into AI comes as the Bitcoin network's post-halving difficulty surge and reduced block rewards have squeezed mining margins according to industry analysis. The company, which operates at 46.6 exahashes per second (EH/s), is now targeting Georgia and Texas for AI-focused facilities, with a 285-megawatt Texas campus already under development according to reports.

The industry-wide trend sees Bitcoin miners repurposing energy infrastructure for AI workloads. For example, IREN secured a $9.7 billion, five-year agreement with Microsoft to host Nvidia GB300 GPUs according to reports, while Core Scientific's $3.5 billion partnership with CoreWeave has revived its operations after bankruptcy according to reports. CleanSpark's CEO Scott Garrison highlighted the strategic value of AI infrastructure, stating, "We have identified Georgia as a strategic region for both potential conversion and expansion" according to company statements.

The offering's structure—a zero-coupon note with a 27.5% conversion premium—appeals to investors seeking long-term growth rather than fixed income according to investment analysis. However, the announcement triggered a 6% drop in CleanSpark's shares in after-hours trading according to market data, a common reaction to convertible debt issuances according to financial analysis. Analysts note the move reflects confidence in CleanSpark's ability to capitalize on the $1.15 billion funding round to stabilize its balance sheet while pursuing high-margin AI contracts according to market research.

CleanSpark's strategy aligns with broader market dynamics. Bitcoin's 2024 halving reduced block rewards by 50%, while rising network difficulty and crypto price volatility have eroded mining profitability according to industry analysis. By leveraging existing data centers and power agreements, firms like CleanSpark aim to mitigate these risks through diversified revenue streams according to financial analysis.

The company's aggressive expansion includes a 271-acre land acquisition in Texas to support AI infrastructure according to financial reports, alongside a pilot project with Submer to develop liquid-cooled computing systems according to industry reports. These initiatives position CleanSpark as a hybrid player in both Bitcoin mining and high-performance computing, a model gaining traction as AI demand surges according to market trends.

---