CleanSpark Shares Drop 5% After Expanding $1.15B Convertible Note to Fund Data Center Growth

November 11, 2025

CleanSpark (CLSK) shares fell 5% after the bitcoin mining and data center operator announced an upsized $1.15 billion convertible note offering, expanding its financing program to accelerate infrastructure and power capacity growth.

The move underscores a broader industry trend, as bitcoin miners and AI-focused data firms increasingly tap debt markets to fund capital-intensive expansion. According to CoinDesk Research, issuance of convertible debt among AI-aligned bitcoin miners has reached record levels, signaling strong investor appetite for hybrid exposure to both digital assets and computing infrastructure.

The Las Vegas-based company will issue 0% Convertible Senior Notes due 2032, following stronger-than-expected demand that led to an increase from its initial target.

CleanSpark plans to allocate about $460 million of the proceeds to repurchase shares at $15.03 per share, while the remainder will fund land acquisitions, new data center builds, power expansion, and repayment of bitcoin-backed credit lines. The notes, priced with a 27.5% conversion premium, include an option for purchasers to increase the offering by $150 million.

The deal—jointly led by Cantor Fitzgerald and BTIG—follows similar financing rounds by TeraWulf (WULF) and Galaxy Digital (GLXY) as the sector consolidates balance sheets and scales up to meet rising compute demand. The transaction is scheduled to close on November 13.

CleanSpark shares traded at $14 in pre-market hours, down roughly 5%. Analysts attributed the drop to delta hedging from banks involved in the offering—a common short-term market dynamic that can pressure shares as counterparties hedge exposure.