CleanSpark (CLSK) Stock Halted on Nasdaq Due to Clerical Warrant Conversion Error

CleanSpark, Inc. (Nasdaq: CLSK), known as America‘s Bitcoin Miner®, has addressed a trading halt imposed by Nasdaq due to a clerical error in the calculation of outstanding warrants and their underlying shares. The issue arose following the company’s acquisition of GRIID Infrastructure on October 30, 2024. The warrants in question were originally issued by GRIID and were converted into CleanSpark warrants as part of the acquisition.

The error involves the incorrect application of the merger exchange ratio to the warrants. Specifically, the 13,800,000 outstanding warrants should represent the right to purchase 960,395 shares of CleanSpark’s common stock at an exercise price of $165.24 per share, reflecting a merger exchange ratio of 0.069593885. However, this ratio was erroneously applied in certain documentation, including the listing application filed with Nasdaq.

The company has emphasized that the trading halt is not related to any issues with its business operations, SEC filings, or financial statements. CleanSpark has contacted Nasdaq representatives and is working diligently to resolve the issue and allow trading of its common stock and warrants to resume.

This incident highlights the importance of accurate documentation in financial transactions and the swift action required to correct such errors to maintain market confidence and compliance with regulatory requirements.