CleanSpark reveals that its wholly-owned subsidiary, CSDC Finance I LLC, plans to issue $2.227 billion in preferred secured notes with a maturity date of 2031 through a private placement. The funds raised will be primarily used to complete the construction of the Sandersville data center in Georgia, as well as to recoup early equity investments in the project and to establish a debt service reserve account.
The bills are issued by the project's subsidiary companies.
This financing was not initiated directly by the listed entity, but rather was pursued at the level of a subsidiary related to the Sandersville project. Another wholly-owned subsidiary, CSRE Properties Sandersville LLC, will provide guarantees for the bills, and the project assets will also serve as collateral.
The company stated that the relevant instruments will have a first lien on most of the assets of the issuing entity and the project company. This means that in the event of a subsequent default, the collateral assets can be disposed of by the creditors.
At present, CleanSpark has not disclosed the coupon rate, issue price, or final delivery date. The company stated that whether this private placement transaction can be completed still depends on market conditions and other conventional transaction terms, and there is no guarantee that it will definitely be carried out according to the current terms.
The funds are mainly invested in Sandersville.
Sandersville The project financing continues the company's data center expansion plan announced in July this year. CleanSpark At that time, it was stated that a 20-year infrastructure leasing agreement had been signed with an unnamed global technology company with investment-grade rating, covering a computing capacity of 175 megawatts in the Georgia campus.
According to the company's disclosure at the time, the initial lease term was expected to generate contract revenue of up to $6.6 billion; if the tenant exercises the two renewal options of 5 years each, the total value of the contract could rise to a maximum of $11.6 billion.
The company expects that the first batch of capacity for Sandersville will begin to be delivered from the fourth quarter of 2027. There have been reports in the media that the tenant could be Meta, but the company has not confirmed the identity of the customer in either this financing announcement or previous leasing announcements.
If the funds raised this time are not sufficient to complete the project construction, CleanSpark will also provide a common type of completion guarantee. In other words, even if the bonds are issued by a subsidiary, the parent company listed on NASDAQ may still be directly obligated to make up for the shortfall in construction funds.
883 Bitcoins produced in August
While advancing its data center projects, CleanSpark remains one of the larger listed Bitcoin mining companies in the United States. The company's latest operational data shows that it produced 593 Bitcoins in August, up from 586 in July; as of the end of August, the company had produced a total of 4,903 Bitcoins for the year.
As of the end of August, CleanSpark held 13,703 units of BTC. In July prior to that, the company sold 229 units of BTC in the spot market and delivered 350 units of BTC through call option contracts. Including the option premiums, the average realized price was $66,133 per unit.
Financially, the company's revenue for the fiscal quarter ending June 30 was $198.6 million, higher than $104.1 million in the same period last year; however, the net loss was $236.2 million, compared to a net profit of $379.4 million in the same period last year. In the quarterly report, the company stated that the loss was mainly related to changes in the fair value of its Bitcoin holdings.
Additional information:As of June 30, CleanSpark held a total of $933.3 million in cash and Bitcoin; prior to the disclosure of this new note issuance plan, the company's total debt was $1.8 billion.
