Company: CLSKW
Filing Date: 2025-04-16
Form Type: 8-K
Source: 0000950170-25-054800
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Company: CLEANSPARK, INC.
Filing Date: 2025-04-16
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On April 14, 2025, CleanSpark, Inc. (the “ Company”) entered into an amended Master Loan Agreement (the “ Agreement”) with Coinbase Credit, Inc. (the “ Lender”) and Coinbase, Inc., as the lending service provider (together, the “ Parties”), the original of which was executed on August 7, 2024. Under the Agreement, the Lender may extend digital asset or cash loans to the Company on terms to be specified in individual loan confirmations executed under the Agreement, enabling the Company to draw funds secured by Bitcoin to support operational activities and growth initiatives. Concurrent with entering into the Agreement, Lender increased the aggregate borrowing capacity available to the Company to $200 million.

General Nature of the Facility

The Agreement creates a framework under which the Company may borrow digital assets or cash from Lender from time to time. Each loan is documented in a separate confirmation that sets forth the specific terms, including principal amount, fees, collateral requirements, and the date on which the loan is to commence.

Interest Rate

The Loan Fee Rate, effectively the interest rate on the borrowed amounts, is to be determined for each loan and is calculated on a daily basis at the annualized rate specified in each confirmation.

Maturity

Each loan may have a fixed term or be open (i. e., terminable on demand), as specified in its confirmation. In general, either party can terminate a loan by providing notice within the time frame set forth in the Agreement. Upon termination, the borrowed digital assets or cash must be returned, and the related collateral released.

Security for the Borrowings

Borrowings under the Agreement are secured by collateral in favor of the Lender. Collateral may include U. S. dollars, USDC stablecoin, Bitcoin, Ether, or other forms agreed upon by the Parties. The collateral’s required value is typically higher than the borrowed amount, subject to margin calls and mark-to-market provisions set forth in the Agreement.

Financial Covenants

The Company must satisfy ongoing margin and collateral maintenance requirements. If the value of posted collateral falls below the margin threshold, the Company must promptly post additional collateral or repay a portion of the loan. Failure to maintain sufficient collateral can result in an event of default and remedies available to the Lender, including the right to liquidate pledged collateral.

The Agreement contains representations and warranties and affirmative and negative covenants customary for financings of this type, as well as