CleanSpark recently experienced a 10% plunge in after-hours trading due to an amendment to its at-the-market (ATM) offering agreement, allowing the sale of up to $800 million of its stock. Originally, CleanSpark made a deal for a $500 million ATM offering with H.C. Wainwright & Co on Jan. 5, 2024. This move is a common strategy for publicly-listed companies looking to raise additional capital through stock dilution.

CleanSpark is not alone in this approach, as other Bitcoin miners like Riot Platforms and Marathon Digital Holdings have entered similar ATM agreements in recent months. With a market capitalization of $4.2 billion, an $800 million stock offering would result in a 19% dilution of CLSK shares.

Despite the recent drop in stock price, CleanSpark has seen significant gains over the past year, up by 95% in 2024 and 685% in the last 12 months.

As CleanSpark prepares for the upcoming Bitcoin halving event, expected to occur on April 20, the company is focusing on increasing its hash rate to remain competitive in the mining industry. Through agreements to purchase new mining facilities, CleanSpark plans to double its hash rate in the first half of 2024, aiming for continued growth in the market.