CleanSpark, Inc. stock forum
CLSK I don’t get it. How is it ever getting back to $15? I don’t see happening anytime soon
CLSK Hoyl fukc this stock is absolutely fuckering me in seven ways since fuckday, wtf ftw?
CLSK here we go 🚀CLSK Just pivot completely and go Quantum AI. Even just a name change to QuantumSpark woud do the trick LOLCLSK Nice it actually made it above my crucial gold horizontal resistance support line!Up next are the two downtrend lines...Hopefully soon!
CLSK SUPER BULLISH NEWS WITH THE COMPLETION OF 650M$ CONVERTABLE NOTES ... In a nut shell:Deal Size: 650M offering at 0%
Conversion Premium: 20.0%, leading to a conversion price of 14.80/share (based on
CLSK 12/12 closing price)Capped Call Overlay: Fully offsets dilution up to 100% above the issue price (24.66/share).
Share Repurchase: 145M was spent to buy back 11.76M shares at 12.33/share - NICE!!
Provisional Call Feature:
CLSK can call the convertibles after 3.5 years IF the stock price exceeds 130% of the conversion price - 19.23/share Unless you're familiar with these types of deals the graph below is hard to follow. I'll break it down, by price, on the x-axis, and what this means for shareholders
@ $12.33 - outstanding shares decline by -11.76M via the recent share buyback which offsets the offering
@ $14.80 - Convertibles convert into equity but dilution still remains fully offset
@ $19.23 -
CLSK can call the convertible notes to cap dilution as its +130% of the call trigger, BUT no net shares can be issued yet @ $24.66 - At this price the capped call protection expires and net dilution can begin but share repurchase limits any impact
Up to this point dilution is fully neutralized by the capped call overlay and share buyback
Between $24.66 - $33.67 modest dilution CAN occur but net shares issued remain below the 11.76m shares repurchased
@ $30 - Dilution increases as the capped call no longer offsets the higher share price
@ $33.67 - break-even point where dilution is fully offset by the 11.67m share repurchase, hence the 0 on the chart. No net new shares issued to this point
@ $35-37 - Net new shares are issue up to 1% of total outstanding
Whats all this mean?
CLSK shareholders remain fully protected up to 24.66/share with 0 dilutionBetween $24.67 - $33.67 - partial dilution can occur but it will be neutralized by its share buybacks
At $37+ even if
CLSK wanted to dilute it will be constrained to just 1% of total shares outstandingFully funded 50eh/s with no near term dillution. They just set the stock for success.
Amazing work @CleanSpark_Inc team!
CLSK 🟢 Cleanspark has completed its previously announced $650 million offering of 0.00% Convertible Senior Notes due 2030.Net proceeds: approximately $633.6 million (growth to 50 EH/s+ is fully funded).
1️⃣Full exercise of the additional $100 million option by initial purchasers.
2️⃣Capped call transactions with a cap price of $24.66 per share (100% premium). 3️⃣Repurchased 11.76 million shares (~4% of outstanding shares) for approximately $145 million.
CEO @ZachKBradford: “”In addition to funding the growth to 50 EH/s, share buyback, and capped call, the additional capital will allow us to keep adding the bitcoin we mine to our balance sheet. Beyond our expansion efforts already under way, we remain well positioned to continue executing on opportunistic acquisitions,” Bradford continued. “Importantly, this offering provides our stockholders greater clarity on near term share count, given our ATM offering was completed in early November, and we have no immediate plans to commence another equity or equity-linked offering, as the capital received from this offering sufficiently covers our near-term strategic objectives.”
No additional shares will need to be issued to pay the convertible until the stock reaches >$33.67.
GOODBYE DILUTION.
CLSK is trash. I’m selling all my shares for a sizable loss. Put it somewhere else.CLSK Oversold!!!! WTF!CLSK Hello upside! This thing has been priming for months! Only a matter of time before it blasts off into hyperspace! I'm talking $25 by End of Year into Q1 2025. Just my thoughts, nfa. I'm loading up