GRIID shareholders will receive shares of CleanSpark based upon an exchange ratio equal to the quotient obtained by dividing $155 million by the total number of shares of GRIID common stock issued and outstanding as of the closing date.

CleanSpark will assume all outstanding debt and other obligations of GRIID. The company also provided GRIID with a $5 million working capital loan and a pay-down bridge loan of approximately $50.9 million that was used to satisfy certain obligations of GRIID at signing.

CleanSpark and GRIID also entered into an exclusive hosting agreement for all currently available power, of which 20 megawatts will be allocated to CleanSpark effective immediately.

“We are looking forward to welcoming the GRIID team into the CleanSpark family and we are excited to apply the CleanSpark way, carefully honed alongside the communities we operate in Georgia and Mississippi, to GRIID’s impressive pipeline in Tennessee,” said Zach Bradford, CEO of CleanSpark.

“This acquisition would give us a clear and steady path over the next three years to accomplish in Tennessee what we proudly achieved in Georgia over the past three years. That achievement was to build out over 400 MW of infrastructure backed by valuable, long-term power contracts.”

CleanSpark noted that it expects the acquisition to allow the company to exceed 100 megawatts in Tennessee by the end of this calendar year. CleanSpark expects the acquisition to help fuel growth to 200 megawatts in 2025 before climbing to above 400 megawatts in 2026.

The transaction has been unanimously approved by the boards of both companies and is expected to close in the third quarter of 2024.

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CLSK Price Action: CleanSpark shares were roughly flat at $16.06 at the time of publication, according to Benzinga Pro.

Photo: 15958319 from Pixabay.