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Bitcoin Miner CleanSpark Raises $35M Funding — Will It Pave The Way For Sustainable Crypto Mining?

Bitcoin Miner CleanSpark Raises $35M Funding — Will It Pave The Way For Sustainable Crypto Mining?
 
    Bitcoin miner CleanSpark secures equipment with $35 million in funding.
 
    North America-based company CleanSpark has officially raised $35 million in equipment financing, backed by 3,336 new S19j Pro bitcoin miners from venture debt financing provider Trinity Capital. CleanSpark expects to be able to use the money to fund expansion-related capital expenditures in the near future.
 
    CleanSpark's Bitcoin Mining Fund
 
    CleanSpark has raised $35 million in equipment financing from venture debt financing provider Trinity Capital.
 
    Equipment financing is backed by 3,336 new S19j Pro Bitcoin miners.
 
    Gary Vecchiarelli, CFO of CleanSpark, said in a press release: "As we mentioned in our first-quarter earnings call, debt capital is the lowest cost of capital available to the company at this time. This non-dilutive facility is our goal to achieve our goals. Vecchiarelli added: “We intend to continue our efforts to obtain non-dilutive capital to meet our growing capex needs. It's worth noting that we haven't touched our ATM since November. "
 
    The financing agreement has a three-year interest rate of 9.9% and requires approximately 3,336 new S19j Pro Miners to be pledged as collateral. The S19j Pro is a crypto mining rig. These powerful devices have a hash rate of 100,000,000,000,000H, which allows them to mine Bitcoin.
 
    CleanSpark has made it clear from the outset that it will use its capital to support its capital expenditures for growth.
 
    During an earnings call in February, the company said it preferred to raise capital by awarding rig-backed debt, and was in active discussions with lenders to achieve that, according to CoinDesk.
 
    In addition to the funds they raised, CleanSpark added that monetizing some of the company's Bitcoin (BTC) assets through sales and/or proceeds is one of the options the company is looking into.
 
    Also read: Crypto Carpet Pull: The Biggest NFT Scam YetCleanSpark’s Sustainable Mining
 
    CleanSpark mines Bitcoin using 100% renewable energy. According to CleanSpark, their sustainability efforts account for changes in the local energy mix by purchasing renewable energy credits and deploying distributed energy systems on-site once the facility reaches scale.
 
    CleanSpark's loan is secured by company assets. The terms are similar to a loan financing deal that Trinity Capital closed last year, in which the company financed its operations with another crypto miner, Hut 8 (HUT).
 
    Crypto mining is the process of creating new units of cryptocurrency, often called coins. Computers and processors are used in cryptocurrency mining to perform all the heavy lifting, such as solving complex mathematical problems. In the cryptocurrency world, crypto mining is the process of solving complex mathematical problems to create individual blocks that are added to the blockchain.
 
    The main goal of cryptocurrency mining is to verify cryptocurrency transactions and prove proof of work by adding this information to a block on the blockchain, which serves as a ledger for mining transactions. Crypto mining is an energy-intensive process that requires the use of expensive hardware and software.
 
    As every other industry transitions to green energy and continues to reduce its carbon footprint, cryptocurrency mining is following suit. Cryptocurrencies continue to gain mainstream acceptance, but as they grow in popularity, the question of their impact on the environment remains a concern for the industry.

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