CleanSpark shares jumped in after-hours trading Monday after the Las Vegas-based Bitcoin mining company announced an expanded credit facility with Coinbase Prime backed by its Bitcoin holdings. The stock closed regular trading at $13.74 and surged to $14.86 (up 8%) in after-hours before settling around $14.60, still up 6%.
CleanSpark Secures $100M Bitcoin-Backed Credit Line
CleanSpark tapped an additional $100 million in credit from Coinbase Prime, using its Bitcoin reserves as collateral. Instead of selling coins on the open market, the company leverages its Bitcoin holdings as a working asset. This non-dilutive approach avoids issuing new shares and allows shareholders to retain their stake without dilution. CEO Matt Schultz said, "This expansion with Coinbase Prime allows us to fund growth without sacrificing shareholder equity or liquidating Bitcoin. We see tremendous opportunity to accelerate mining growth while also preparing select data centers for high-performance compute applications."
CleanSpark is Using Its Bitcoin as Company Collateral
This strategy of using Bitcoin as collateral is becoming increasingly common among publicly traded miners. By pledging their Bitcoin, companies maintain exposure to the asset's upside while unlocking cash for operational needs. Brett Tejpaul, head of Coinbase Institutional, described the move as "a significant step forward for growing the crypto ecosystem through focused capital deployment." He highlighted Coinbase Prime's role in providing custody and credit infrastructure.
Proceeds will be directed toward expanding CleanSpark's energy portfolio, scaling Bitcoin mining operations, and building out high-performance computing (HPC) capabilities. The company is converting some of its facilities near metro centers into diversified compute campuses to meet growing demand for AI and cloud services. CleanSpark has also signaled interest in branching beyond pure mining into other forms of computing, reflecting flexibility as the industry evolves. According to market data, CleanSpark's stock has risen 33% over the last five trading days.