Cleanspark's Stock Tumbles 10% After Plans to Sell $800 Million in Shares

Bitcoin miner Cleanspark’s stock plunged 10% in after-hours trading after revising its at-the-market (ATM) offering agreement to sell up to $800 million of its stock, a decision that would dilute CLSK shares by 19%, given its $4.2 billion market capitalization. The adjustment from an initial $500 million to $800 million offering with H.C. Wainwright & Co was disclosed in a March 28 SEC filing, aiming to generate additional capital, a strategy also employed by other Bitcoin miners like Riot Platforms and Marathon Digital Holdings. Despite the recent stock price drop, Cleanspark has seen a significant increase of 95% in 2024 and 685% over the past 12 months, while preparing for the Bitcoin halving event expected on April 20, which will reduce mining rewards, with the company positioned to have the lowest cost of Bitcoin production post-halving.