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Bitcoin mining company CleanSpark experienced a 10% decline in its stock value during after-hours trading following the announcement of an $800 million share offering. This offering, through an at-the-market (ATM) agreement, was an increase from the initial $500 million agreement with H.C. Wainwright & Co. CleanSpark aims to sell shares of its common stock at $0.001 per share as disclosed in a recent SEC filing. This strategy of primary stock dilution is commonly used by publicly-listed companies to raise capital.

 

 

 

CleanSpark’s decision to pursue this offering follows a trend among Bitcoin miners, with companies like Riot Platforms and Marathon Digital Holdings also engaging in similar ATM agreements, albeit at lower amounts. Given CleanSpark’s market capitalization of $4.2 billion, the $800 million offering would result in a 19% dilution of CLSK shares.

 

 

 

The impact on CleanSpark’s stock price was significant, with a 16% drop during after-hours trading, following an 8.2% decline during regular trading hours. This decline reflects investor sentiment regarding the potential effects of the share offering on the company’s value.

 

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