Bitcoin News Today: CleanSpark Shifts Power from Bitcoin to AI with $1B Boost

Bitcoin Miner CleanSpark Offers $1 Billion Convertible Bond to Fund Expansion and Share Buybacks

CleanSpark Inc. (CLSK) has announced a $1 billion convertible bond offering, marking a significant move to finance its growing operations as the Bitcoin miner and data center operator accelerates its pivot into artificial intelligence infrastructure.

The Las Vegas-based company plans to use up to $400 million of the proceeds for share repurchases, while the remainder will fund power and land acquisitions, data center development, and debt repayment, according to a statementBitcoin Miner CleanSpark Offers $1 Billion Convertible Bond. The zero-coupon convertible bonds, set to mature in 2032, carry a conversion premium of 27.5% to 32.5% and are being marketed with the help of Cantor Fitzgerald and BTIGBitcoin Miner CleanSpark Offers $1 Billion Convertible Bond.

The offering reflects a broader industry trend of Bitcoin miners leveraging their energy infrastructure to diversify into high-performance computing (HPC) and AI, a shift driven by the unprofitability of crypto mining amid rising network difficulty and Bitcoin's post-halving price pressuresWhy Bitcoin miners’ AI pivot could be the boon they need. CleanSpark, for instance, recently acquired 271 acres near Houston, Texas, and secured 285 megawatts of power capacity for a dedicated AI data center, boosting its total power under contract by 28%CleanSpark Pivots Beyond Bitcoin Mining with Major AI Data Center Expansion in Texas. The company also partnered with Submer, a cooling solutions provider, to optimize energy efficiency for its AI-focused facilitiesCleanSpark expands power capacity, secures Texas site for AI push.

CleanSpark is not alone in this pivot. Competitors like TeraWulf and IREN have similarly struck major deals to host AI workloads. TeraWulf signed a $3.7 billion, 10-year hosting agreement with Google-backed Fluidstack, while IREN secured a $9.7 billion GPU cloud services contract with MicrosoftCleanSpark expands power capacity, secures Texas site for AI push. Analysts at Bernstein upgraded price targets for miners embracing AI, including CleanSpark, which now sits at $24 per share from $20Why Bitcoin miners’ AI pivot could be the boon they need. The firm's October Bitcoin mining output of 612 BTC, generating $64.9 million in sales, underscores its ability to sustain operations while scaling AI infrastructureCleanSpark Pivots Beyond Bitcoin Mining with Major AI Data Center Expansion in Texas.

However, the convertible bond announcement initially rattled investors. CleanSpark's shares fell 6.3% in after-hours trading to $14.09 following the disclosure, as the market digested the dilution risk associated with the convertible notesCleanSpark Shares Fall After Disclosing $1 Billion Convertible Notes Offering. The stock has declined 19% over the past month, underperforming the S&P 500's 1.54% gain on the same periodCleanSpark (CLSK) Stock Declines While Market Improves: Some Information for Investors. Despite this, Zacks Investment Research upgraded its earnings estimates for CleanSpark, projecting $0.05 per share in Q3 2025, a 118.5% year-over-year increase, and $1.36 in full-year earningsCleanSpark (CLSK) Stock Declines While Market Improves: Some Information for Investors.

The bond offering comes as the crypto sector faces mixed signals. Robinhood, which reported a 339% year-over-year surge in crypto revenue, is exploring holding Bitcoin on its balance sheet but has yet to finalize plansRobinhood weighs backing its balance sheet with Bitcoin, $HOOD stock crashes 10%. Meanwhile, other miners like MARA Holdings and Galaxy Digital have also raised convertible debt this year, with TeraWulf and Galaxy Digital securing over $1 billion each in separate offeringsBitcoin Miner CleanSpark Offers $1 Billion Convertible Bond.

CleanSpark's strategic shift highlights the growing intersection of Bitcoin mining and AI infrastructure. By repurposing its energy assets, the company aims to capitalize on the surging demand for computing power while mitigating the volatility of cryptocurrency marketsWhy Bitcoin miners’ AI pivot could be the boon they need. As the global AI market is projected to reach $407 billion by 2027CleanSpark Expands Power Capacity for AI Campus as Bitcoin Miners Pivot to HPC, miners with low-cost power and modular data centers are well-positioned to capture a slice of this growth.

---