CleanSpark Borrows $100M Against Bitcoin, Avoids Shareholder Dilution

Coinbase Prime has extended a $100 million Bitcoin-backed credit facility to CleanSpark, a U.S.-based Bitcoin miner, marking a strategic move to fund the company’s expansion without diluting shareholder equity. The credit, secured against CleanSpark’s Bitcoin holdings, will be allocated to energy portfolio development, scaling mining operations, and investing in high-performance computing (HPC) capabilities. This follows a $200 million facility expansion in April 2025, reflecting a broader trend among miners leveraging Bitcoin as collateral for liquiditytitle1^[1].

CleanSpark’s CFO, Gary A. Vecchiarelli, emphasized the firm’s commitment to “non-dilutive financing,” a strategy that avoids issuing new shares to raise capital. This approach distinguishes CleanSpark from peers who rely on equity sales or increased leverage to fund operations. The company currently holds 12,703 BTC, valued at approximately $1.43 billion, making it the tenth-largest public holder of Bitcointitle2^[2]. The credit line aligns with its “Infrastructure First” strategy, aiming to diversify revenue streams beyond mining by converting data centers into HPC campuses near metropolitan areastitle3^[3].

The funds will support CleanSpark’s energy expansion, which includes optimizing low-cost electricity sources, and its pivot into HPC—a sector gaining traction as demand for AI and cloud computing surges. CEO Matt Schultz highlighted the potential to “accelerate mining growth while preparing select data centers for high-performance compute applications,” underscoring the company’s dual focus on Bitcoin mining and infrastructure diversificationtitle4^[4].

The market responded positively to the announcement, with CleanSpark’s stock rising nearly 6% in after-hours trading. Over the past five days, the stock has gained 33%, reflecting investor confidence in the non-dilutive capital strategytitle5^[5]. Brett Tejpaul, Head of Coinbase Institutional, noted the arrangement’s role in advancing the crypto ecosystem, leveraging Coinbase Prime’s custody and credit infrastructure to facilitate the dealtitle6^[6].

The move occurs amid challenging conditions for Bitcoin miners. Network difficulty and hashrate records, coupled with transaction fees falling below 1% of block rewards, have increased capital intensity. Tariffs on imported mining equipment from Southeast Asia—now at 21.6% for machines from Indonesia, Malaysia, and Thailand—have further strained marginstitle7^[7]. CleanSpark, like peers Hut 8 and Riot Platforms, has expanded credit lines with Coinbase to mitigate these pressures, signaling a shift toward Bitcoin-backed financing as an alternative to equity issuancetitle8^[8].

Analysts highlight the strategic implications of this trend. By retaining Bitcoin holdings as collateral, miners like CleanSpark maintain exposure to potential price appreciation while accessing liquidity. This model could become a template for the sector, particularly as regulatory scrutiny and supply chain disruptions persist. However, risks remain, including volatility in collateral value and the need for robust risk management to avoid margin callstitle9^[9].

The credit facility underscores CleanSpark’s position as a leader in adapting to the evolving crypto landscape. With a focus on infrastructure and compute diversification, the company aims to stabilize revenue amid the cyclical nature of Bitcoin mining. As the industry navigates tariffs, rising costs, and technological shifts, non-dilutive strategies may prove critical for sustaining growth and shareholder valuetitle10^[10].