CleanSpark, Inc., a sustainable bitcoin mining and energy technology company, announced it has finalized $35 million in non-dilutive financing from Trinity Capital Inc., a provider of venture debt financing. The three-year equipment financing agreement is backed by 3,336 new S19j Pro miners and carries an annual interest rate of 9.9 percent.

CleanSpark intends to use the proceeds from the facility for growth capital expenditures. Currently, CleanSpark has a fleet of over 23,000 latest-generation bitcoin mining machines in operation, with approximately 12,000 machines pending delivery and deployment in batches through October 2022.

“As we mentioned in our Q1 earnings call, debt capital is currently the lowest cost of capital available to the company,” said Gary Vecchiarelli, Chief Financial Officer of CleanSpark. “This non-dilutive facility is an example of us delivering on our capital strategy and the expectations we have previously communicated. We intend to continue our efforts of obtaining non-dilutive capital to finance our growth capex needs. It is worth noting that we have not drawn on our ATM since November.”

“We are excited to partner with the team at CleanSpark, which is on a mission to mine bitcoin responsibly, using a mix of sustainable energy including nuclear, hydroelectric, solar and wind,” said Ryan Little, Managing Director of Equipment Financing at Trinity Capital. “CleanSpark is an excellent addition to our portfolio and recently earned a spot among the top 50 fastest-growing companies on a Financial Times’ list. We look forward to being a part of their growth story.”

The financing is intended to strengthen CleanSpark’s sustainable business strategy whereby the company converts some of its bitcoin (BTC) holdings to fund operations and expansion, with a goal of limiting shareholder dilution and stably maximizing returns for shareholders.