Shares of CleanSpark (NASDAQ: CLSK) crashed hard on Tuesday. The Utah-based energy-management and cryptocurrency-mining company is converting some of its massive stock gains since November into cash, diluting the value of existing shares. The stock was trading 21.8% lower at 11 a.m. EDT today.
In a flurry of regulatory filings on Monday night, CleanSpark said that it will sell 9.09 million additional shares on the public market, on or about March 18. The new shares were priced at $22, which works out to a $200 million cash infusion. The company will use the cash to expand its infrastructure, purchase more cryptocurrency mining machines, and for other general corporate purposes.