With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%.
Bitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock.
CleanSpark initially inked a deal for a $500 million ATM offering with New York investment banking firm H.C. Wainwright & Co on Jan. 5, 2024, where CleanSpark said it may, from time to time, offer and sell shares of its common stock at $0.001 per share, a March 28 SEC filing reveals.
Primary stock dilution is a common strategy for publicly-listed companies to raise additional capital.
