Coinbase Grants CleanSpark $100 Million Bitcoin-Backed Credit
CleanSpark secures $100M Bitcoin-backed credit from Coinbase to expand mining, invest in HPC, and grow energy portfolio while avoiding share
Quick overview
CleanSpark, one of the leading U.S. Bitcoin mining firms, has secured an additional $100 million Bitcoin-backed credit line from Coinbase Prime. Announced on September 22, the deal expands a financial partnership that began earlier this year when CleanSpark raised its facility with Coinbase to $200 million. The miner said the new funds will be used to expand Bitcoin mining capacity, invest in high-performance computing (HPC), and grow its energy portfolio.
Non-Dilutive Funding Strategy
The credit line is part of CleanSpark’s broader non-dilutive capital strategy, allowing the firm to access liquidity without issuing new shares. This protects existing shareholders from dilution, a challenge that has weighed heavily on other mining firms. Instead of selling mined Bitcoin or stock, CleanSpark is leveraging its Bitcoin holdings as collateral, a move that enhances financial flexibility while preserving long-term reserves.
Expanding Into Energy and HPC
CEO Matt Schultz highlighted that the credit will support CleanSpark’s push to increase its energy portfolio by adding megawatts and exploring new HPC opportunities. He indicated that the firm could convert some data centers, particularly those near urban hubs, into high-performance computing campuses. This would allow CleanSpark to diversify beyond mining and tap into demand for computing power in AI and data-intensive industries.
Institutional Backing and Strategy Endorsements
Coinbase Institutional Head Brett Tejpaul praised the approach, describing CleanSpark’s use of non-dilutive funding as a disciplined model that benefits the broader digital asset ecosystem. CleanSpark CFO Gary Vecchiarelli echoed the sentiment, stressing that the company’s “Infrastructure First” strategy has consistently supported growth and shareholder value.
Industry Context: Credit Lines Over Equity Sales
CleanSpark’s move reflects a broader industry trend. Several major miners are securing credit lines against Bitcoin reserves rather than selling coins or issuing equity. Riot Platforms closed a $100 million facility with Coinbase in April, while Hut 8 raised its credit line to $130 million earlier this year. The shift comes as mining economics tighten, with Bitcoin difficulty and hashrate at all-time highs and August transaction fees dropping to their lowest in years, below 1% of block rewards.
Market Response and Outlook
Despite rising energy and hardware costs, CleanSpark’s stock has rallied 33% in the past five days. Analysts suggest investors are rewarding the firm’s cautious approach to financing and expansion at a time when rivals remain weighed down by debt and shareholder dilution. By securing fresh credit from Coinbase, CleanSpark positions itself to expand Bitcoin mining operations while building a foothold in HPC, signaling to investors that miners are finding smarter, more sustainable ways to scale.
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