CleanSpark Stock Jumps After Getting $100 Million in Bitcoin Support Credit from Coinbase

CleanSpark Inc. shares rose on Monday, extending bullish momentum last week after the company announced an announcement of expanded Bitcoin-backed credit financing with Coinbase Prime.

The Las Vegas-based mining company ended its regular trading for $13.74, but rose more than 8% after get off work to $14.86 after the deal news. The stock is currently growing 6% after get off work and trading close to $14.60.

CleanSpark received an additional $100 million in credit backed by its Bitcoin reserves. Instead of selling coins on the market, the company uses its Bitcoin holdings as collateral. This is basically a strategy to turn mining bitcoin into working assets.

For shareholders, this means that growth can be funded without issuing new shares, providing a non-bond way to keep it expanding.

CleanSpark uses its Bitcoin as corporate collateral

CleanSpark has been leveraging its Bitcoin holdings more frequently to raise funds. This is a strategy that is becoming increasingly common among publicly traded miners.

Basically, by using its bitcoin as collateral, companies holding Bitcoin continue to touch on the potential upside of assets while unlocking cash can actually run.

“This expansion with Coinbase Prime allows us to fund growth without sacrificing shareholder equity or clearing Bitcoin,” said Matt Schultz, CEO and Chairman. “We see a huge opportunity to accelerate mining growth while also preparing high-performance computing applications for select data centers.”

CleanSpark said the benefits will be put into practice, such as expanding its energy portfolio, expanding its Bitcoin mining business, and building high-performance computing capabilities.

This includes converting certain facilities near the metropolitan center into diverse computing campuses where demand for AI and cloud services is growing rapidly. This approach is gaining appeal as competition among American miners intensifies. CleanSpark, in particular, has relied on energy expansion and efficiency to maintain its lead.

The company also expressed its willingness to branch into other forms of computing outside of mining, a sign of flexibility in the development of the industry.

Brett Tejpaul, head of Coinbase Institutional, described CleanSpark’s latest capital strategy as “an important step towards enhancing the crypto ecosystem through key capital deployments.”

He highlighted the role of Coinbase Prime in providing custody and credit infrastructure behind the transaction.

CleanSpark shares have grown 33% over the past five trading days, according to market data.