The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
(Bloomberg) -- The first junk-bond offering for a data center tied to Meta Platforms Inc. attracted demand more than four times the deal's size, with juicy yields helping to lure investors.
Saudis Give European Oil Buyers No Supplies for Next Month
Saudis Give European Oil Buyers No Supplies for Next Month
Zuckerberg Has an AI Empire to Build. Meet the Adviser Who Handles the Details
Zuckerberg Has an AI Empire to Build. Meet the Adviser Who Handles the Details
Fed Raises Rates to Curb Inflation, Drawing Rebuke From Trump
Fed Raises Rates to Curb Inflation, Drawing Rebuke From Trump
McDonald's Is Planning to Revamp Its Value Strategy to Revive US Sales
McDonald's Is Planning to Revamp Its Value Strategy to Revive US Sales
Warsh Defies Trump's Calls for Rate Cut as War Stokes Inflation
Warsh Defies Trump's Calls for Rate Cut as War Stokes Inflation
Money managers placed orders of about $10 billion for CleanSpark Inc.'s debt sale, set at almost $2.28 billion, according to people familiar with the matter.
The five-year notes launched at a price of 98.5 cents on the dollar to yield 8.25%, a separate person said, asking not to be identified because they are not authorized to speak publicly. That's roughly 1.75 percentage points more than the average for debt issued by BB rated firms tracked by Bloomberg.
Investors have demanded higher premiums for data center financings amid a surge in such offerings and growing concerns about excessive capital spending, raising funding costs for the AI infrastructure buildout. Similar financings backed by investment-grade tenants were sold at yields as low as below 6% earlier this year.
The CleanSpark fundraising, led by Morgan Stanley, will help finance construction of a data center in Sandersville, Georgia, according to a regulatory filing.
The facility has been fully leased to Anviran LLC, a Meta subsidiary, under a $6.6 billion, 20-year contract, according to a CleanSpark presentation. The data center is expected to begin operations in the fourth quarter of 2027, and Meta will guarantee rent and operating expenses, the firm said.
Meta's commitment to CleanSpark gives the junk-rated borrower a predictable revenue stream to support borrowing for a costly project. Data center developers have now sold more than $3 billion of high-yield bonds so far this year, with most of them backed by long-term leases with hyperscalers including Oracle Corp. and Amazon.com Inc., according to Bloomberg-compiled data.
CleanSpark didn't immediately respond to a request for comment, while Morgan Stanley declined to comment.
Las Vegas-based CleanSpark is among a growing number of public Bitcoin-mining companies that are becoming data-center operators to support artificial intelligence applications. The company has a market value of roughly $3.63 billion.
Fender Is Making Enemies With a Messy Fight Over Its Iconic Strat
Fender Is Making Enemies With a Messy Fight Over Its Iconic Strat
'Death Sentences': Crafting America's Favorite Countertops Is Killing Workers
'Death Sentences': Crafting America's Favorite Countertops Is Killing Workers
What It Takes to Get Your First Job on Wall Street
What It Takes to Get Your First Job on Wall Street
The World's Most Reliable AI Detector Has a Human Problem
The World's Most Reliable AI Detector Has a Human Problem
Trump's Quest to Be Consequential Puts the Entire World at Risk
Trump's Quest to Be Consequential Puts the Entire World at Risk
CleanSpark Discloses Meta As Georgia AI Data Center Tenant — CLSK Unit Plans Over $2.2B Raise To Fund Buildout Stocktwits • 2d ago CLSK BTC-USD
CleanSpark Discloses Meta As Georgia AI Data Center Tenant — CLSK Unit Plans Over $2.2B Raise To Fund Buildout
The Price to Finance the AI Data Center Boom Is Rising, Just Ask Meta The Wall Street Journal • 1mo ago META
The Price to Finance the AI Data Center Boom Is Rising, Just Ask Meta
Meta's AI Borrowing Costs Rise on $12 Billion Data Center Deal GuruFocus.com • 1mo ago META BLK
Meta's AI Borrowing Costs Rise on $12 Billion Data Center Deal
Meta faces higher borrowing costs in latest $12bn data centre financing PREMIUM Financial Times • 1mo ago META BLK
Meta faces higher borrowing costs in latest $12bn data centre financing
CleanSpark seeks $2.227 billion in secured notes for Meta-backed Sandersville campus Blockspace • 2d ago CLSK META
CleanSpark seeks $2.227 billion in secured notes for Meta-backed Sandersville campus
Meta Seeks $25 Billion Bond Sale As AI Spending Soars GuruFocus.com • 4mo ago META C
Meta Seeks $25 Billion Bond Sale As AI Spending Soars
Meta’s Latest AI Data Center Debt Raise Could Reportedly Cost More Than Its 2025 Record Deal Stocktwits • 1mo ago META BLK
Meta’s Latest AI Data Center Debt Raise Could Reportedly Cost More Than Its 2025 Record Deal
