Bitcoin mining company CleanSpark plans to issue $550 million convertible preferred notes

According to PR Newswire, CleanSpark, Inc., a Bitcoin mining company listed on NASDAQ, announced its plan to offer convertible senior notes due in 2030 with a total value of $550 million to initial subscribers based on market conditions and other factors.

CleanSpark also expects to grant the initial purchasers of the convertible notes an option to purchase additional convertible notes up to a principal amount of $100 million within 13 days from the date of first issuance.

The company plans to use the net proceeds from this offering for paying costs associated with capped call transactions, repurchasing up to $125 million worth of common stock from convertible bond investors using net proceeds. The remaining net proceeds will be used for fully repaying outstanding amounts under its credit facility at Coinbase, capital expenditures, acquisitions and general corporate purposes.