CleanSpark's Meta-Tied Data Center Attracts Strong Demand for Junk Bond Offering
CleanSpark Inc., a publicly traded Bitcoin-mining company transitioning into data-center operations, has seen strong investor demand for its debut junk bond offering. The $2.28 billion debt sale attracted over $10 billion in orders from money managers, with the five-year notes priced at 98.5 cents on the dollar to yield 8.25%. This is significantly higher than average yields for BB-rated firms and reflects growing investor appetite for high-yield data center financings amid concerns about capital spending. The funds will finance a new data center in Sandersville, Georgia, which has been fully leased by Meta Platforms Inc.'s subsidiary Anviran LLC under a $6.6 billion, 20-year contract. The facility is expected to begin operations in Q4 of 2027 and includes rent guarantees from Meta. This offering highlights the increasing trend among data center developers using high-yield bonds backed by long-term leases with major tech tenants like Amazon and Oracle. CleanSpark's move into AI infrastructure aligns it with a broader industry shift, as Bitcoin-mining firms pivot toward more stable revenue streams through hyperscaler partnerships.
Topics: CleanSpark Inc. data centers junk bonds Meta Morgan Stanley