08:26 AM EST, 12/13/2024 (MT Newswires) -- CleanSpark ( CLSK ) said Friday it priced a $550 million offering of 0.00% convertible senior notes due 2030, with a 20% conversion premium.

The notes have an initial conversion price of $14.80 per share, representing a 20% conversion premium to the stock's last closing price, and are linked to capped call transactions with an initial cap price of $24.66 per share, representing a 100% premium to the Dec. 12 stock price.

CleanSpark ( CLSK ) granted initial purchasers the option to acquire an additional $100 million of the notes within 13 days of issuance.

CleanSpark ( CLSK ) expects net proceeds of $535.9 million, which can increase to $633.6 million if the option to buy additional notes is fully exercised. The company plans to use $76.5 million to pay the capped call transactions, to buy back up to $145 million of its common stock, to repay its Coinbase (COIN) creditline, and to finance capital expenditures, acquisitions, and general corporate purposes.

The notes, maturing on June 15, 2030, will be senior unsecured obligations and convertible into cash, shares of common stock, or a combination of both.

CleanSpark ( CLSK ) shares were down almost 4% in recent premarket trading.