Bitcoin miner CleanSpark has agreed to acquire its competitor, GRIID Infrastructure, for $155 million, as announced on June 27.

The companies also disclosed an exclusive hosting agreement for all available power, with 20 MW allocated to CleanSpark immediately.

This move comes as Bitcoin miners face significant challenges following a recent halving event that reduced their earnings. In response, many miners are diversifying their revenue streams by mining altcoins and exploring AI applications.

Acquisition details:

Under the deal, CleanSpark will assume all of GRIID’s existing debt and obligations. Additionally, CleanSpark has provided GRIID with a $5 million working capital loan and a $50.9 million bridge loan to cover certain obligations at the time of signing.

CleanSpark CEO Zach Bradford stated that the acquisition would help the company replicate its success in Georgia over the next three years in Tennessee. He commented:

"This acquisition will enable us to exceed 100 megawatts in Tennessee by the end of this year and grow to 200 megawatts in 2025, eventually surpassing 400 megawatts in 2026."

Both companies’ Boards of Directors have unanimously approved the transaction, expected to close in the third quarter of 2024. However, it still requires approval from GRIID shareholders and other customary closing conditions.

Once completed, GRIID shareholders will receive CleanSpark common stock. The exchange ratio will be calculated by dividing the total merger consideration by the number of GRIID common shares outstanding at the merger’s closing.

GRIID, founded in 2018, began mining in 2019 and operates four mining facilities in Watertown, New York, and Limestone, Maynardville, and Lenoir City, Tennessee. It also has a Research and Development Center in Austin, Texas, and a Development, Deployment, and Equipment Repair Center in Rutledge, Tennessee.

Following the announcement, GRIID shares dropped about 50%, while CleanSpark’s shares increased nearly 4%.