CleanSpark Enters Into A Partnership With Coinbase Where It Has Acquired A $50M Revolving Line Of Credit Collateralized By A Portion Its Bitcoin Holdings 'To Help Take Advantage Of Opportunities In The Marketplace At A Low Cost Of Capital'

Author: Benzinga Newsdesk | August 09, 2024 04:17pm

"CleanSpark weathered the challenges of the bitcoin halving with one of the most efficient mining portfolios as evidenced by our strong gross margins," said Gary A. Vecchiarelli, CFO. "During the third quarter, we saw block rewards get cut by 50%, yet we managed to recognize only 7% less revenue by mining 1,583 bitcoin in the period. Additionally, we recognized a net loss primarily due to two non-cash factors: an unfavorable mark-to-market on the fair value of our large bitcoin holdings and an impairment on older, less-efficient miners. The non-cash impairment was directly attributable to a conscious strategic decision to upgrade and maintain one of the world's largest and most efficient state-of-the-art mining fleets. We continue to have one of the strongest balance sheets in the industry and as a result I am happy to announce that we have also entered into a partnership with Coinbase where we have acquired a $50 million revolving line of credit collateralized by a portion of our bitcoin holdings. This line of credit will help us continue to take advantage of opportunities in the marketplace at a low cost of capital."

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