CleanSpark (Bitcoin miner) has raised $35 Million in equipment financing. The funding was backed 336 new S19jPro bitcoin miners. Trinity Capital (TRIN), a provider of venture debt financing.
The proceeds of the financing will be used by the sustainable miner based in Henderson, Nevada for growth capital. “As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the Company,” said Gary Vecchiarelli, chief financial officer of CleanSpark, in a statement. “We intend to continue our efforts of obtaining non-dilutive capital to finance our growth [capital expenditure] needs,” he added.
On CleanSpark’s earnings call in February, the company said that it prefers to raise capital by issuing rig-backed debt and that the company is in active talks with lenders. Another option is to sell some of its bitcoin (BTC), and/or yield.
“All the options available for the miners in terms of financing have fundamentally changed over the last year,” Mas Nakachi, head of crypto finance firm XBTO’s mining operations, told CoinDesk in a recent interview. “I think miners are starting to get more comfortable with equipment-based financing,” he added. XBTO, which offers other loan products, provides financing to miners through asset-backed loans as well as bitcoin collateral.
Most recently, Australian bitcoin miner Iris Energy (IREN) said that it has secured $71 million in equipment financing from institutional bitcoin broker NYDIG with a 25-month term and 11% interest and backed by 19,800 Bitmain S19j Pro miners. Meanwhile, in March, NYDIG also provided about $81.4 million in S19 J Pro-backed loans to miner Greenidge Generation (GREE).
“We are excited to partner with the team at CleanSpark, which is on a mission to mine bitcoin responsibly, using a mix of sustainable energy including nuclear, hydroelectric, solar, and wind,” said Ryan Little, managing director of equipment financing at Trinity Capital, in a statement.