CleanSpark secured a second $100 million Bitcoin-backed credit facility, increasing its collateralized borrowing capacity to $400 million and enabling non-dilutive funding to expand data centers, increase hashrate and scale high-performance computing while preserving shareholder value.
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CleanSpark raised $100M via a Bitcoin-collateral facility, boosting total capacity to $400M.
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Financing is non-dilutive and uses the company’s BTC treasury as collateral to support growth.
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Nearly 13,000 BTC on CleanSpark’s balance sheet enables liquidity without selling assets.
CleanSpark Bitcoin loan: $100M Two Prime facility boosts $400M total capacity — learn how miners use BTC as collateral to scale operations. Read more.
CleanSpark’s new $100 million Bitcoin-backed facility with Two Prime raises its total collateralized lending capacity to $400 million, enabling non-dilutive financing for data-center and hashrate expansion.
Bitcoin mining company CleanSpark announced a second $100 million credit facility this week, using its Bitcoin reserves as collateral to access liquidity while avoiding new equity issuance.
The facility, arranged with Two Prime and secured entirely by CleanSpark’s BTC treasury, increases the firm’s total collateralized borrowing capacity to $400 million. The company holds nearly 13,000 BTC on its balance sheet, positioning it among the largest public Bitcoin holders.
CleanSpark is the ninth largest public Bitcoin holder, with nearly 13,000 BTC on its balance sheet. Source: BitcoinTreasuries.NET
The structure is non-dilutive, meaning CleanSpark did not issue new shares to raise the funds. Instead, the company used Bitcoin as pledged collateral to secure the loan, preserving existing shareholders’ ownership while improving access to growth capital.
Earlier in the week CleanSpark disclosed a separate $100 million facility with Coinbase Prime, also backed by Bitcoin reserves. Company representatives told a news outlet these are distinct arrangements that together enhance financial flexibility.
What is the CleanSpark Bitcoin-backed credit facility?
CleanSpark’s Bitcoin-backed credit facility is a secured lending agreement that uses the company’s BTC treasury as collateral to borrow $100 million without issuing equity. The loan increases the firm’s collateralized borrowing capacity to $400 million to fund data-center expansion and hashrate growth.
How will CleanSpark use the funds?
The company plans to deploy proceeds to expand data centers, add mining capacity and scale high-performance computing infrastructure. Short-term liquidity enables faster capital deployment with lower dilution risk and preserves exposure to Bitcoin’s potential upside.
For miners, collateralized lending is increasingly attractive. Instead of selling mined BTC to cover operating costs, miners keep holdings on balance sheets and borrow against reserves to finance growth.
Other public miners have pursued similar strategies. Riot Platforms previously secured a Bitcoin-backed credit facility and larger miners often use treasury-backed financing to manage cash flow.
The largest Bitcoin miners, including Marathon Digital, CleanSpark, Riot Platforms, and Cango, hold substantial amounts of BTC on their balance sheets. Source: The Miner Mag
Why are Bitcoin-backed loans rising among miners?
Bitcoin’s price appreciation and the size of miner treasuries make collateralized lending practical. Loans backed by BTC can be cost-efficient and non-dilutive compared with equity raises. This trend changes treasury management, letting miners retain upside while unlocking cash.
What risks should companies consider?
Borrowing against BTC exposes lenders and borrowers to price volatility. Collateral requirements and margin calls can trigger additional funding needs if Bitcoin prices fall. Firms must balance leverage, liquidity and operational requirements to avoid forced sales.
Frequently Asked Questions
How much total collateralized borrowing capacity does CleanSpark now have?
CleanSpark’s two recent $100 million facilities bring its total collateralized lending capacity to $400 million, secured by the company’s nearly 13,000 BTC treasury.
Is this financing dilutive to shareholders?
No. The facilities are non-dilutive: CleanSpark did not issue new equity and instead used Bitcoin holdings as collateral to access funds.
Key Takeaways
- Non-dilutive financing: CleanSpark used BTC collateral to raise $100M, preserving shareholder ownership.
- Increased capacity: Total collateralized borrowing capacity now stands at $400M.
- Treasury strategy: Miners are increasingly leveraging BTC reserves to fund expansion while retaining exposure to price upside.
Conclusion
CleanSpark’s latest $100 million Bitcoin-backed facility underscores the growing use of BTC treasuries as collateral for corporate financing. By expanding collateralized capacity to $400 million, the company can accelerate data-center and hashrate growth without diluting shareholders. Expect miners to continue balancing liquidity needs with Bitcoin exposure.
