CleanSpark Taps Two Prime for $100M Bitcoin-Backed Loan at ~7.7% Interest
CleanSpark has opened a new $100 million bitcoin-backed revolving credit facility with Two Prime, bringing its total collateralized loan capacity to $400 million.
The financing, announced Thursday, comes just days after CleanSpark expanded its borrowing capacity with Coinbase Prime to $300 million for ongoing data center buildout, bitcoin mining deployments, high-performance computing (HPC) initiatives, and broader digital asset strategies.
With the latest loan capacity, CleanSpark’s CFO and president, Gary Vecchiarelli, said the company has effectively utilized its treasury balance of nearly 13,000 bitcoin to finance growth through “responsibly sized leverage.”
According to a separate SEC filing, the agreement with Two Prime, formally executed on Sep. 19, is a one-year revolving loan secured by bitcoin at an initial 160% collateralization level, or a loan-to-value ratio of 62.5%. The facility bears an interest rate of Term SOFR plus 3.55% annually.
With the current 1-month Term SOFR sitting at approximately 4.16%, the implied interest rate CleanSpark is paying on the facility is around 7.71% per annum.
The loan also includes multiple risk mitigation clauses. If the value of posted bitcoin collateral falls by 40% within a 12-hour window, the lender can demand repayment or replacement collateral. The deal also specifies collateral thresholds:
- Collateral Call Level: 135%
- Liquidation Level: 125%
- Refund Level: 190%
The latest financing comes as CleanSpark moves beyond its historical identity as a “pure-play” bitcoin miner. Earlier this week, the company disclosed it had expanded its credit facility with Coinbase by another $100 million and signaled a potential strategic pivot into HPC—joining peers like TeraWulf, Core Scientific (NASDAQ: CORZ), and IREN in seeking new revenue streams from AI and GPU-based workloads.
