Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 119

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 119
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 claims raised in the Consolidated Smith Action are without merit and intends to defend itself vigorously against them. The case remains stayed pending the Court’s evidentiary hearing and subsequent ruling on the SLC’s motion to dismiss. At this time, the Company is unable to estimate potential losses, if any, related to this matter.

F-64

20. SUBSEQUENT EVENTSAsset acquisition to build out HPC and AI infrastructureOn October 29, 2025, CleanSpark announced the acquisition of certain land in Texas and an option to acquire additional adjacent land in Austin County, Texas. The Company also executed long-term power supply agreements providing for the progressive buildout of power capacity over an estimated eighteen-month development period. The purchase consideration consisted of a combination of cash and shares of the Company’s common stock at closing, approximating $66,000, with additional cash payable upon the occurrence of certain post-closing events. The project, which marks CleanSpark’s entry into the Texas market, is expected to serve as a cornerstone of the Company’s expansion into HPC and AI infrastructure.Issuance of convertible senior notes due 2032On November 13, 2025, the Company completed a private offering of $1,150,000 aggregate principal amount of 0.00% Convertible Senior Notes due 2032 (the “2032 Notes”). The 2032 Notes were issued at par under an indenture dated November 13, 2025, between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2032 Notes are senior unsecured obligations of the Company and are not guaranteed by any subsidiary. Net proceeds were approximately $1,128,000, after deducting debt issuance costs.The Company used approximately $460,000 of the net proceeds to repurchase shares of its common stock from investors in the 2032 Notes and intends to use the remaining proceeds for the expansion of its power and land portfolio, development of data-center infrastructure, repayment of outstanding bitcoin-backed credit balances, and general corporate purposes.The 2032 Notes will mature on February 15, 2032, unless earlier converted, redeemed or repurchased. They are convertible at an initial rate of 52.1832 shares per one thousand dollars ($1,000) principal amount, equivalent to an initial conversion price of approximately $19.16 per share of common stock, subject to customary adjustments. Prior to August 15, 2031, conversion is permitted only upon the occurrence of specified events; thereafter,