Bitcoin miner Cleanspark plunged after it planned to sell $800 million in shares

According to Bitcoin.com reports, Bitcoin miner CleanSpark plunged 10% in after-hours trading as it amended its offering agreement to sell up to $800 million in shares on the market (ATM), a decision that would dilute CLSK shares by 19% given its $4.2 billion market capitalization.

A March 28 filing with the U.S. Securities and Exchange Commission (SEC) revealed that the company’s offering with HC Wainwright & Co was adjusted to $800 million from an initial $500 million in an effort to raise more capital, a strategy that has also been adopted by other Bitcoin mining companies such as Riot Platforms and Marathon Digital Holdings.

Despite the recent drop in the stock price, CleanSpark’s share price has risen significantly by 95% in 2024 and a whopping 685% in the past 12 months, and the company is preparing for the expected Bitcoin halving event on April 20, which will reduce mining rewards, and CleanSpark will be the company with the lowest cost of Bitcoin production after the halving. ’