Bitcoin mining company CleanSpark experienced a 10% decline in after-hours trading on Thursday following its amendment to an at-the-market (ATM) offering agreement, allowing for the sale of up to $800 million worth of its stock.

Initially, CleanSpark had entered into a $500 million ATM offering agreement with New York investment banking firm H.C. Wainwright & Co on January 5, 2024, where it indicated its intention to offer and sell shares of its common stock at $0.001 per share, as revealed in a March 28 SEC filing.

Stock dilution through primary offerings is a common method employed by publicly-listed companies to secure additional capital. CleanSpark is not the only Bitcoin miner to opt for an ATM agreement for this purpose, as both Riot Platforms and Marathon Digital Holdings engaged in $750 million ATM agreements in August and October respectively.

With a market capitalization of $4.2 billion, an $800 million stock offering would result in a 19% dilution of CLSK shares.

Beginning the trading day at $23.20, CLSK experienced a 16% decline to $19.1 in after-hours trading, which included an 8.2% drop during regular trading hours, according to Google Finance. Despite this decline, CLSK has witnessed a 95% increase in value in 2024 and a staggering 685% rise over the past 12 months.

CleanSpark is among the many Bitcoin miners gearing up for the impending Bitcoin halving event scheduled for April 20, which will halve Bitcoin mining rewards from 6.25 BTC ($441,000) to 3.125 BTC ($220,500).

According to a Jan. 12 CoinShares research report, CleanSpark boasts the lowest production cost to mine one Bitcoin post-halving at $26,900. On Feb. 6, the company announced its anticipation of doubling its hash rate in the first half of 2024 following an agreement to acquire four new mining facilities in Mississippi valued at $19.8 million, resulting in an immediate 2.4 exahashes per second (EH/s) increase for the company.

Additionally, CleanSpark agreed to purchase another mining facility in Dalton, Georgia, for $6.9 million, expected to yield 0.8 EH/s. However, this facility is currently under construction and is projected to be operational by April 2024.