CleanSpark inks $35 million financing agreement with Trinity Capital

By Rebecca Melvin

New York, April 27 – Cleanspark Inc. entered into a $35 million master equipment financing agreement with Trinity Capital Inc., according to a company release and 8-K filing with the Securities and Exchange Commission.

The borrowings will be used to finance the company’s acquisition of blockchain computing equipment.

At closing on April 22, $20 million was drawn and the remaining $15 million is fundable upon the company’s request no earlier than July 21 and no later than Dec. 31, 2022.

The loans have a term of 36 months from issuance, and borrowings bear interest at 9.9% per annum, with a monthly rate factor of at least 0.032198 payable monthly on the total cost of the equipment purchased with such borrowing.

The company will pay Trinity a non-utilization fee equal to 3% of the unused amount of available conditional commitment on the termination date.

It also paid Trinity a non-refundable commitment fee equivalent to 1% of the conditional commitment, or $350,000, at the time of the first draw.

The agreement contains financial reporting requirements and some other affirmative obligations.

The bitcoin mining and energy technology company is based in Henderson, Nev.

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