CleanSpark’s debut junk bond offering for Meta data center attracts 4x demand

CleanSpark, a company that built its reputation mining Bitcoin, just pulled off something remarkable: selling roughly $2.25 billion in junk bonds to finance an AI data center leased to Meta Platforms. Investors placed around $10 billion in orders, oversubscribing the deal by more than four times. The transaction marks the first US high-yield bond offering tied to a Meta data center project. The deal structure The offering consists of five-year senior secured notes issued through CSDC Finance I LLC, a CleanSpark subsidiary. Proceeds will fund a 175 megawatt AI data center campus in Sandersville, Georgia. The data center is backed by a 20-year triple-net lease with Anviran LLC, a Meta subsidiary. In a triple-net lease, the tenant covers rent plus all operating expenses, including taxes, insurance, and maintenance. Initial yield discussions landed around 8.5%, roughly two percentage points above the average yield for BB-rated debt. Morgan Stanley led the underwriting, with Goldman Sachs and Wells Fargo rounding out the syndicate. From Bitcoin mining to AI hosting CleanSpark’s pivot is worth lingering on. The company has been a pure-play Bitcoin miner for years, operating large-scale f...