Bitcoin Miner CleanSpark Raises $35 Million In Financing From Trinity Capital – Bitcoin Magazine

CleanSpark closed a $35 million, non-dilutive financing deal by collateralizing over 3,000 miners with a 9.9% interest rate to fuel growth expenditures.
CleanSpark (Nasdaq: CLSK), a sustainable bitcoin mining and energy technology company, has closed $35 million in non-dilutive financing from Trinity Capital Inc (Nasdaq: TRIN), in a press release sent to Bitcoin Magazine.
The financing agreement is collateralized by 3,336 new S19j Pro Miners and carries an annual interest rate of 9.9% over a three-year period. CleanSpark intends to use the financing to support growth capital expenditures.
“As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the company,” Gary Vecchiarelli, CFO of CleanSpark stated in the release. “This non-dilutive facility is an example of us delivering on our capital strategy and the expectations we have previously communicated.”
Non-dilutive capital is financing obtained without giving up equity or ownership of a company. Collateralizing loans in this way allows companies to fuel high-growth measures by maintaining control and access to equity for when it is absolutely necessary.
“We intend to continue our efforts of obtaining non-dilutive capital to finance our growth capex needs. It is worth noting that we have not drawn on our ATM since November,” Vecchiarelli continued.
Trinity Capital noted their enthusiastic support of CleanSpark’s unique initiatives to mine bitcoin in a sustainable environment through the use of a multitude of energy sources.
“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.
“Cleanspark is an excellent addition to our portfolio and recently earned a spot among the top 50 fastest-growing companies on a Financial Times’ list. We look forward to being a part of their growth story,” Little concluded.
Trinity Capital Inc is a 13-year old venture capital firm focusing on disruptive technologies and startups by utilizing non-dilutive venture debt.