Given CLSK’s $4.2 billion market capitalization, a $800 million stock sale would essentially result in a 19% share price reduction. After-hours trading on Thursday saw a 10% decline in CleanSpark, a bitcoin miner after the company modified its at-the-market (ABM) offering deal to sell up to $800 million of its stock.
Learn More About CleanSpark’s Agreement With NY Based Investment Company
A March 28 SEC filing shows that on January 5, 2024, CleanSpark signed an agreement with New York investment banking company H.C. Wainwright & Co. for a $500 million ABM offering. Under the terms of the agreement, CleanSpark stated it may sometimes offer and sell shares of its common stock for $0.001 per share. Publicly traded corporations frequently use primary stock dilution as a means of raising extra funding.
For the same reason, Riot Platforms and Marathon Digital Holdings also entered into $750 million ABM agreements last August and October, meaning CleanSpark is not the first Bitcoin miner to do so. Given CLSK’s $4.2 billion market capitalization, a $800 million stock sale would essentially result in a 19% share price reduction. According to Google Finance, CLSK began the trading day at $23.20 but is now down 16% to $19.1 after hours, after an 8.2% decline during trading hours. CLSK is up 685% over the past 12 months and 95% in 2024 despite the stock market meltdown.
