CleanSpark Inc ( CLSK ) shares are trading higher Thursday after the company announced plans to acquire GRIID Infrastructure Inc ( GRDI ) in an all-stock transaction.

What Happened: CleanSpark ( CLSK ) has entered into a definitive merger agreement to acquire all the issued and outstanding common stock of GRIID Infrastructure ( GRDI ). GRIID operates Bitcoin (CRYPTO: BTC) mining data centers in various cities and towns throughout Tennessee. The total enterprise value of the transaction is $155 million.

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

“We are looking forward to welcoming the GRIID team into the CleanSpark ( CLSK ) family and we are excited to apply the CleanSpark ( CLSK ) 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 ( CLSK ).

“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 ( CLSK ) noted that it expects the acquisition to allow the company to exceed 100 megawatts in Tennessee by the end of this calendar year. CleanSpark ( CLSK ) 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.

Don’t Miss: What’s Going On With Bitcoin Mining Stock Hut 8 Today?

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