CleanSpark Abandons Bitcoin 'HODL' Strategy to Stop Dilution Through Capital Raising

Bitcoin mining company CleanSpark (CLSK) is deviating from its HODLing strategy of holding on to 100% of the BTC it mined.

The Henderson, Nevada-based organization announced Tuesday that it would resume selling some of its mined bitcoins to fund its operations.

“While we continue to view Bitcoin as a long-term, safe haven asset, we believe a more effective way to increase shareholder value is through a balanced approach that combines monetizing new production and creating long-term assets,” said CEO Zach Bradford.

CleanSpark currently has over 12,000 BTC in assets, which is worth just over $1 billion at current market prices.

The company also increased its credit line with Coinbase Prime (COIN) to $200 million, following a strategy to fund its operations without having to sell shares. CleanSpark, which has a mining capacity of 40.2 exahashes per second (EH/s), plans to expand this capacity to 50 EH/s.

“As part of this balanced approach, we intend to continue to expand our diversified capital base. In the current market environment, we view the debt markets as the most efficient and responsible way to support our growth, and our strong balance sheet positions us well to capitalise on this opportunity,” Bradford added.

CLSK shares rose just over 1% before paring gains in early trading on Tuesday, outperforming the broader BTC mining sector, according to the CoinShares Bitcoin Miners ETF (WGMI), which fell more than 1%.

Source: cryptonews.net