Convertible notes and dilution risk in crypto miners: CLSK and CAN as case studies

Convertible notes are reshaping how crypto miners raise capital. CLSK is pursuing a $1 billion convertible note plan that could reach $1.2 billion, with 0% interest and a 2032 maturity — a combo that has investors weighing dilution risk ^[2][3]. At the same time, CAN tapped the market for a different flavor of funding, closing a $72 million direct offering backed by notable institutions to fund North American data centers and rig expansion ^[4][5].

Details matter: CLSK's terms include no interest and no accretion, plus a stock buyback component up to $400 million ^[2]. That mix can keep cashflow flexible but could dilute existing holders when conversion happens ^[3].

CAN's route signals institutional appetite: a $72 million direct offering at $1.13 per ADS, backed by Brevan Howard, Galaxy Digital and Weiss to fuel hardware expansion ^[4][5].

Implications for the crypto-mining landscape:

• CLSK's convertible notes create dilution risk on conversion; 0% interest helps cash, but long runway to 2032 means potential share count growth down the line ^[3].
• CAN's institutional-backed direct offering provides equity capital for North American data centers and mining rig expansion, signaling strong ownership support ^[4][5].
• Hash-rate expansion and share-price dynamics will hinge on how quickly these firms deploy capital and how markets price dilution and growth prospects ^[2][4].

Two paths, one trend: miners funding growth while balancing dilution, timing, and the long-term value of their rigs.

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