As a crypto investor with a background in renewable energy and technology, I’m excited about CleanSpark’s latest acquisition of GRIID Infrastructure. The potential upside, as projected by H.C. Wainright, is a bullish sign for the future growth of this company.
Experts at H.C. Wainright are optimistic about CleanSpark’s latest acquisition, estimating that the company’s share price could reach as high as $27.
Thursdays saw CleanSpark (CLSK) finalize a stock transaction worth $155 million to take over GRIID Infrastructure (GRDI).
As a crypto investor in CleanSpark, I’m excited about the potential acquisition of GRIID and the estimated financial implications. Based on preliminary assessments by H.C. Wainright, CleanSpark may need to pay around $86 million. This figure aligns with GRIID’s market capitalization as of June 27. In order to complete this deal, CleanSpark would issue approximately 5.2 million shares, equating to roughly 2.5% of its current total share count. Assuming a share price of $16.587 at the time of issuance.
Experts at H.C. Wainright predict that this deal will markedly expedite CleanSpark’s creation of top-tier and affordably priced power infrastructure in the near future, reinforcing our Buy recommendation.
I’ve discovered that CleanSpark is assuming both the debt obligations and other responsibilities previously held by GRIID. To facilitate a smooth transition, CleanSpark has extended two loans to GRIID: a working capital loan worth $5 million and a pay-down bridge loan amounting to $50.9 million. These loans are secured and take priority over any existing debts that GRIID may have.
CleanSpark is currently traded at $16.23 per share.
Energy acquisition terms
In spite of the relatively expensive cost per megawatt (MW) for CleanSpark’s recent deals, they view GRIID’s extensive energy infrastructure in Tennessee as a valuable strategic resource. The company intends to develop over 400 MW of data center capacity in Tennessee within the next two and a half years, with goals to activate 100 MW by the end of 2024 and an additional 100 MW by 2025.
With its current capacity of 450 MW and additional expansion plans, CleanSpark aims to build a total infrastructure of over 1 gigawatt by the year 2026.
As a researcher studying this particular topic, I can tell you that the anticipated acquisition, scheduled to be completed in the third quarter of 2024, hinges on several factors. Firstly, it requires the approval of GRIID’s shareholders. Secondly, there are other conditions that must be met before the deal can go through.
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2024-06-28 20:50