CleanSpark Surges as Miner Receives $100mn Credit Line from Coinbase Prime

The shares increased 0.9% to $13.74 during normal hours before rising to about $14.80 in the hours after market close, according to data on the NASDAQ stock exchange’s website. 

Scaling up

The funding will be used to develop “energy portfolio, scaling its Bitcoin mining operations, and investing in high-performance computing,” according to a company press release. "We see tremendous opportunity to accelerate mining growth while simultaneously optimizing our assets,” said Matt Schultz, CleanSpark's Chief Executive Officer and Chairman.

CleanSpark recently readjusted its leadership, expanding the role of several members of its executives. In an 8 Sept announcement, Shultz noted that the company aims to “pursue our broader strategy that seeks to capitalize on all available opportunities.”

“Bitcoin-backed”

“Bitcoin-backed credit capacity” means that CleanSpark is using some of its BTC holdings as collateral for the line of credit, enabling the company to secure liquidity without directly selling its coins. CleanSpark is currently ranked as the 9th largest treasury in the world on BitcoinTreasuries.net, with a total of 12,073 BTC. 

And this is not the first time CleanSpark has received a line of credit from Coinbase Prime this way. Earlier this year, the two companies made a similar announcement for a $200 million line of credit.

Coinbase Prime is a platform designed for institutional investors, produced by Coinbase, a crypto exchange.