Bitcoin miner CleanSpark announced Monday it has secured an additional $100 million credit line from Coinbase Prime, the institutional arm of the cryptocurrency exchange. The move expands on the company’s existing financing agreement with Coinbase and is backed by CleanSpark’s Bitcoin holdings.
This latest round of funding is aimed at bolstering the company’s liquidity and supporting its growth initiatives, including energy expansion, mining operations, and new high-performance computing projects. According to CleanSpark’s Chief Financial Officer Gary A. Vecchiarelli, the strategy allows the company to pursue growth through non-dilutive financing, meaning it can raise capital without issuing new shares and diluting the ownership of existing shareholders. This approach, he noted, sets the company apart from peers who often rely on equity dilution to cover costs.
The decision comes as Bitcoin miners face increasingly tight market conditions. Network mining difficulty has reached record highs, making it more computationally intensive to mine a block and secure rewards. At the same time, Bitcoin transaction fees, which provide a key source of revenue for miners, have fallen to their lowest levels in months. These factors, combined with rising energy costs and potential tariffs on imported equipment, have put pressure on mining margins.
CleanSpark’s move aligns with a broader industry trend among Bitcoin miners, who are increasingly using their Bitcoin treasuries as collateral to secure credit lines instead of selling their mined coins. Riot Platforms and Hut 8, for example, have also secured similar arrangements with Coinbase.
CleanSpark, which holds 12,703 BTC worth about $1.43 billion, has seen its stock rise by 33% over the past five trading days following the announcement.
