Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 14

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 14
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 settled and is considered as additional purchase consideration and eliminates on the condensed consolidated balance sheets. The GRIID Acquisition enhances the Company’s bitcoin mining capacity, particularly in Tennessee, where it plans to expand in the coming years. The GRIID Merger also broadens the Company’s operational footprint within the Tennessee Valley Authority service territory, offering greater geographic and power supply diversification. Goodwill recognized related to the preliminary purchase price represents the future economic benefits arising from planned operational synergies, expanded geographic space, operational facilities and data centers, and a bitcoin mining workforce. The results of GRIID have been included in the condensed consolidated financial statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s sole reportable segment, which is the bitcoin mining segment. Goodwill is not deductible for income tax purposes. No deferred tax assets or liabilities are expected in relation to this amount.On October 30, 2024, CleanSpark completed the GRIID Acquisition for a total preliminary purchase consideration of $128,247, which is comprised of the following:

        ($ in thousands, except price per share)
         
        GRIID

        Shares of CleanSpark common stock issued

        5,031

        Closing price per share of CleanSpark common stock on October 30, 2024
         
        $
        12.06

        Fair value of CleanSpark common share issued as a portion of purchase price
         
        $
        60,677

        Fair value of CleanSpark warrants issued as a portion of purchase price

        6,097

        Fair value of equity portion of purchase price

        66,774

        Cash consideration

        1

        Settlement of amounts payable by Company to GRIID under Hosting Agreement

        (1,164
        )

        Settlement of the GRIID Credit Agreement as a portion of purchase price

        62,636

        Settlement of preexisting relationship, including interest, as a portion of purchase price

        61,472

        Preliminary purchase price
         
        $
        128,247

      The amounts in the table below represent the preliminary allocation of the purchase price to the acquired assets and liabilities assumed based on their preliminary respective estimated fair values on the date of acquisition. Certain of the amounts are subject to revision during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date.Adjustments to the provisional values, which may include other long-term assets