The merger between GRIID and CleanSpark has been approved unanimously by both companies’ Boards of Directors. The merger is expected to be finalized in the third quarter of 2024, pending GRIID shareholder approval and other standard conditions. The exchange ratio is determined by the aggregate merger consideration, taking into account GRIID’s outstanding liabilities and valuing CleanSpark’s common stock at $16.587 per share, while it’s currently trading at $16.35 per share.
To support GRIID during the transition, CleanSpark has provided a $5 million working capital loan and a $50.9 million pay-down bridge loan, both secured and with seniority over GRIID’s other debts. CleanSpark’s CEO, Zach Bradford, has expressed optimism about the merger, emphasizing the potential for rapid growth in Tennessee. He indicated plans to exceed 100 MW in Tennessee by the end of 2024 and to increase to 200 MW in 2025 and over 400 MW by 2026.
However, the company’s stock has seen significant fluctuations. GRIID’s shares opened the week at $1.17 a share and experienced a 150% increase in 3 days, reaching prices above $3 a share on Wednesday. Since the announcement of the acquisition, the company’s shares have declined to $1.20 a share.
GRIID operates bitcoin mining data centers across Tennessee, with support from the Tennessee Valley Authority. Its operations extend to Watertown, New York, and various locations in Tennessee, along with additional facilities in Ohio and Texas.
