CleanSpark ends 100% HODL policy, secures $200m from Coinbase Prime

CleanSpark announced it might begin selling a portion of its Bitcoin production to fund operations, while deepening its relationship with Coinbase Prime.

Bitcoin miner CleanSpark has expanded its capital strategy with a $200 million Bitcoin-backed credit facility from Coinbase Prime, marking a shift away from its previous 100% Bitcoin HODL strategy.

Announced Tuesday, the company said it will begin selling part of its monthly Bitcoin (BTC) production to fund operations and support growth. The move positions CleanSpark as one of the few miners opting for self-funded operations over equity dilution or increased leverage.

“With our Bitcoin holdings now exceeding 12,000, valued at around $1 billion, we believe this is the right time to monetize some of our new production,” said CEO Zach Bradford. “Our approach is strategic, not ideological.”

CleanSpark’s BTC treasury desk

The updated strategy comes alongside the launch of CleanSpark’s institutional-grade Bitcoin treasury desk, following a thorough due diligence process across borrowing, lending, custody, and derivatives. The company said the desk will help optimize its bitcoin holdings and risk management.

Coinbase Prime increased its credit facility of $200 million, collateralized by Bitcoin, as part of its institutional lending services. 

“We’re committed to delivering strategic solutions that help CleanSpark thrive,” said Brett Tejpaul, Head of Coinbase Institutional.

CleanSpark currently operates at 40.2 exahash per second (EH/s) of mining capacity and is targeting an expansion to 50 EH/s. 

The company emphasized that it plans to continue diversifying its capital stack with debt financing seen as a more efficient growth tool in today’s market.

The move signals a maturation in capital strategy among U.S. Bitcoin miners, many of whom are still heavily reliant on equity financing.