Financial Data and Key Metrics - The company ended Q2 2023 with a hash rate of 6.7 exahashs per second, nearly triple the rate from the same period last year [4] - 1,871 Bitcoins were mined in Q2 2023, doubling the production from the same quarter last year [4] - Revenues increased by 14% to $42.5 million compared to the previous year, with revenue per Bitcoin at approximately $22,700, down from $41,000 last year [20] - Adjusted EBITDA turned positive at $12.7 million, reversing the negative adjusted EBITDA of $2 million in Q1 2023 [10][25] - The company held $10.3 million in cash and 196 Bitcoins, with total liquidity exceeding $15 million [26] Business Line Data and Key Metrics - The fleet average efficiency is currently 31 watts per terahash, with expectations to improve to 26 watts per terahash as new XPs are deployed [5] - The company secured 99% of the machines needed for its expansion projects in Washington and Sandersville [9] - The Washington expansion is expected to add 2 exahash per second, while the Sandersville expansion will add 6.3 exahash per second, bringing total capacity to 8.6 exahash per second [16][17] Market Data and Key Metrics - Bitcoin prices have recovered, leading to a 50% sequential increase in revenues [21] - The company expects to more than double its hash rate by the end of the calendar year, reaching 16 exahash per second [12] - The cost to mine Bitcoin decreased by 16% compared to Q1 2023, with power costs at $0.059 per kilowatt-hour [22] Company Strategy and Industry Competition - The company is focusing on mindful growth and maximizing profitability through efficiency gains and scale [12][39] - The acquisition of 45,000 XPs is expected to significantly improve efficiency and reduce costs, positioning the company well for the upcoming Bitcoin halving [15][27] - The company is closely monitoring policy and regulatory developments in the US, expecting state-level mining policies to protect the industry [18] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of efficiency as the company prepares for the Bitcoin halving in April 2024 [37] - The company is confident in its ability to meet infrastructure build-out timelines and manage supply chain risks [59] - Management expects transaction fees to normalize but views them as a bonus rather than a core part of the business model [30][57] Other Important Information - The company paid down 11% of its long-term debt in Q2 2023, reducing it to $17.6 million [26] - A legal reserve of $2.7 million was set aside for the settlement of litigation related to the discontinued energy business [50] - The company disclosed enhanced cost of revenue details in its Form 10-Q, providing more transparency on mining costs [49] Q&A Session Summary Question: How is the company thinking about capital allocation and funding operations given Bitcoin price levels? - The company plans to fund operations and growth through margins and operational cash flow, with a focus on increasing the HODL balance as Bitcoin prices recover [61][73] Question: What are the risks related to infrastructure build-out and supply chain constraints? - The company is confident in its ability to manage construction timelines and supply chain risks, with 99% of machines secured and infrastructure projects on schedule [59] Question: How are transaction fees impacting the business, and what is the long-term outlook? - Transaction fees are seen as a bonus, with expectations that they will normalize but remain a part of Bitcoin's long-term sustainability [30][57] Question: What is the outlook for energy costs in Georgia? - The company is actively managing energy costs and has the flexibility to hedge power prices when the time is right, with current wholesale prices as low as $0.013 per kilowatt-hour [62][75] Question: What is the cadence of the Sandersville build-out and associated CapEx? - The Sandersville expansion is expected to be completed by early to mid-Q4 2023, with CapEx spread evenly over the next few quarters [65][79]

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the periods ended March 31, 2023 [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CleanSpark, Inc. as of March 31, 2023, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The company's total assets increased to $531.6 million as of March 31, 2023, from $452.6 million at September 30, 2022, primarily driven by a significant increase in Property and Equipment, net Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 (Unaudited) | September 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $32,906 | $50,776 | | Bitcoin | $5,267 | $11,147 | | Property and equipment, net | $440,253 | $376,781 | | **Total Assets** | **$531,553** | **$452,625** | | **Total Current Liabilities** | $41,282 | $34,041 | | **Total Liabilities** | $57,672 | $48,613 | | **Total Stockholders' Equity** | $473,881 | $404,012 | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) For the six months ended March 31, 2023, the company reported a net loss of $47.5 million, a significant shift from a net income of $14.3 million in the prior-year period Statement of Operations Summary (in thousands) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues, net** | **$42,546** | **$37,198** | **$70,365** | **$74,323** | | Bitcoin mining revenue, net | $42,488 | $36,965 | $70,234 | $73,940 | | Total costs and expenses | $60,032 | $34,399 | $116,734 | $56,213 | | (Loss) Income from operations | ($17,486) | $2,799 | ($46,369) | $18,110 | | **Net (loss) income** | **($18,460)** | **($171)** | **($47,491)** | **$14,315** | [Consolidated Statements of Cash Flow](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) For the six months ended March 31, 2023, net cash provided by operating activities was $11.9 million, a decrease from $46.9 million in the prior year period, mainly due to the net loss Cash Flow Summary for the Six Months Ended March 31 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,876 | $46,882 | | Net cash used in investing activities | ($111,063) | ($131,110) | | Net cash provided by financing activities | $89,069 | $68,101 | | **Net decrease in cash and cash equivalents** | **($10,118)** | **($16,127)** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial activities, including business acquisitions, strategic shifts, equity changes, legal proceedings, and subsequent events - The company's primary business is **sustainable bitcoin mining**, having discontinued its energy operations as of June 30, 2022, to focus exclusively on this sector[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) - In October 2022, the company completed the Mawson Transaction, acquiring a mining facility in Sandersville, GA, for a total consideration of **$39.1 million**, including cash, stock, and seller financing[42](index=42&type=chunk)[257](index=257&type=chunk) - The company issued **37,061,234 shares** of common stock under its At-The-Market (ATM) agreement, raising net proceeds of **$99.5 million** during the six months ended March 31, 2023[58](index=58&type=chunk) - Subsequent to the quarter end, on April 6, 2023, the company agreed to purchase **45,000 XP mining machines** from Bitmain for **$144.9 million**[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic focus on bitcoin mining, operational performance, and financial results, highlighting increased hashrate, production, rising costs, and liquidity management [Bitcoin Mining Operations](index=43&type=section&id=Bitcoin%20Mining%20Operations) The company significantly expanded its mining operations, increasing its hashrate to 6.7 EH/s by March 31, 2023, from 2.3 EH/s a year prior, leading to higher production costs Hashrate and Efficiency Comparison | Metric | As of March 31, 2023 | As of March 31, 2022 | | :--- | :--- | :--- | | CleanSpark Hashrate (EH/s) | 6.7 | 2.3 | | CleanSpark % of Global Hashrate | 1.90% | 1.21% | | Miner Efficiency (w/th) | 31.0 | 30.7 | Cost of Mining One Bitcoin (Six Months Ended March 31) | Cost Component | 2023 | 2022 | | :--- | :--- | :--- | | Weighted average cost of mining one bitcoin | $12,403 | $9,055 | | Average revenue of each bitcoin mined | $20,651 | $47,429 | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) For the six months ended March 31, 2023, revenues decreased 5% to $70.2 million, while total costs and expenses more than doubled to $116.7 million, resulting in a net loss from continuing operations of $48.7 million Comparison of Results for the Six Months Ended March 31 (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Bitcoin Mined | 3,401 | 1,559 | | Average Bitcoin Price | $20,651 | $47,429 | | Bitcoin Mining Revenue | $70,234 | $73,940 | | Cost of Revenues | $42,498 | $14,320 | | Depreciation & Amortization | $40,675 | $17,879 | | **Net (Loss) Income from Continuing Ops** | **($48,654)** | **$17,676** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, the company had a negative working capital of $8.4 million, relying on cash, bitcoin holdings, and ATM equity offerings for liquidity and capital expenditures - The company had negative working capital of **$8,376 thousand** as of March 31, 2023[140](index=140&type=chunk) - Principal sources of liquidity are cash, bitcoin inventory, and an **At-the-Market (ATM) offering facility**[140](index=140&type=chunk) - Cash from operating activities for the six months ended March 31, 2023 was **$11.9 million**, down from **$46.9 million** in the prior year period[144](index=144&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Based on their evaluation, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2023[159](index=159&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2023[160](index=160&type=chunk) [PART II – OTHER INFORMATION](index=57&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information on legal proceedings and key risk factors affecting the company's operations and financial condition [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings arising in the ordinary course of business, with detailed information available in Note 12 of the consolidated financial statements - The company is involved in various claims and lawsuits; for details, refer to **Note 12 - Commitments and Contingencies**[162](index=162&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks facing the company, emphasizing those related to the volatile crypto asset market, including market disruptions, custodian risks, price volatility, and corporate indebtedness - The company faces significant risks from crypto market disruptions, citing the bankruptcies of FTX, Celsius, and others, which have caused **extreme price volatility** and loss of confidence in the digital asset ecosystem[164](index=164&type=chunk) - There is a risk that bitcoin held by a custodian (like Coinbase) could be considered property of the custodian's bankruptcy estate, potentially making CleanSpark an **unsecured creditor** and unable to recover its assets[166](index=166&type=chunk) - The company's indebtedness, including a **$14.5 million outstanding loan** collateralized by miners, could increase vulnerability to adverse economic conditions and limit financial flexibility[167](index=167&type=chunk) - The company does not hedge its bitcoin holdings, directly exposing it to **significant price volatility**; the market price of one bitcoin ranged from approximately **$15,460 to $29,190** during the six months ended March 31, 2023[170](index=170&type=chunk)

CleanSpark ❖ NASDAQ: CLSK & -20 30 80 130 180 230 CLSK BTBT BITF RIOT MARA IREN CORZ NET AVG ARBK GREE HIVE 46% 228% NASDAQ: CLSK & | --- | --- | --- | --- | --- | --- | |--------------|--------------|---------|---------------|-------------------------|--------------| | | | | | | | | Hashrate | | | Bitcoin Mined | Wholly-owned Facilities | | | 1.9 EH/s | 6.2 EH/s | 660 BTC | 1,531 BTC | 2 | 4 | | Dec 31, 2021 | Dec 31, 2022 | Q1 FY22 | Q1 FY23 | Dec 31, 2021 | Dec 31, 2022 | The forward-looking statements i ...

CleanSpark, Inc. (NASDAQ:CLSK) Q1 2023 Earnings Conference Call February 9, 2023 4:30 PM ET Company Participants Isaac Holyoak - Chief Communications Officer Zach Bradford - CEO Gary Vecchiarelli - CFO Conference Call Participants Mike Colonnese - H.C. Wainwright Josh Siegler - Cantor Fitzgerald Greg Lewis - BTIG Brian Dobson - Chardan Capital Markets Operator Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call ...

Bitcoin Holdings and Transactions - Bitcoin holdings decreased from $11,147 thousand as of September 30, 2022, to $3,863 thousand as of December 31, 2022, due to sales and impairments[78] - The company sold 34,067 thousand worth of bitcoin during the three months ended December 31, 2022, resulting in a realized loss of $517 thousand[78] - The company added 27,746 thousand worth of bitcoin during the same period[78] - The company held approximately 234 bitcoins as of December 31, 2022, with a carrying value of $3,863 on the Consolidated Balance Sheet[106] Financial Performance - The company reported a loss from continuing operations of $30,488 thousand for the three months ended December 31, 2022, compared to income of $15,644 thousand in the same period of 2021[90] - Basic loss per share from continuing operations was $0.46 for the three months ended December 31, 2022, compared to earnings of $0.38 per share in the same period of 2021[90] - Bitcoin mining revenue for Q4 2022 was $27.7 million, a 25% decrease compared to $37.0 million in Q4 2021, driven by a significant drop in average bitcoin price from $55,903 to $18,130[115] Bitcoin Mining Operations - Bitcoin mining has become the company's principal revenue-generating business activity, with no intention to mine other cryptocurrencies at this time[98] - The company's operating mining units are capable of producing over 6.2 exahash per second (EH/s) as of December 31, 2022, and increased to 6.6 EH/s by February 9, 2023[100] - The company mined 1,530 bitcoins in Q4 2022, up from 661 bitcoins in Q4 2021, due to an increase in operational miners from 18,800 to 63,700[115] - The company's hashrate accounted for 2.3% of the global hashrate as of December 31, 2022, up from 1.0% in the same period in 2021[111] - The company's mining fleet efficiency improved to 31.7 watts per terahash (w/th) in Q4 2022, compared to 35.3 w/th in Q4 2021[111] - The company plans to continue expanding its bitcoin mining operations through acquisitions, infrastructure development, and strategic co-location agreements[100] Energy and Cost Management - Energy costs represented 70% of bitcoin mining revenue for wholly-owned locations in Q4 2022, up from 8% in Q4 2021, driven by higher power prices[112] - The company curtailed 15% of its mining fleet in Q4 2022 due to nationwide energy price spikes, reducing production to avoid excessive costs[114] - Voluntary curtailment of bitcoin mining operations during December 2022 due to extreme weather conditions and significantly higher energy prices in Georgia and New York[119] - Resumption of mining operations after energy prices dropped back to consistent rates post-extreme weather event[119] - Continuous evaluation of energy and bitcoin prices to determine advantageous periods for curtailing mining operations[119] - Increased utilities and hosting fees due to higher volume of mining equipment installed and rising cost per megawatt utilized[119] Sustainability and Clean Energy - The company is developing a long-term sustainability and clean energy plan for its bitcoin mining operations, utilizing clean and renewable energy resources[97] Financial Instruments and Cash Balances - The fair value of financial instruments measured at Level 1 was $4,840 thousand as of December 31, 2022, while Level 3 instruments were valued at $2,324 thousand[83] - Cash balances in excess of FDIC limits were $1,811 thousand as of December 31, 2022, down from $20,213 thousand as of September 30, 2022[85] Share Information - Common stock outstanding as of February 9, 2023: 77,992,916 shares[123]

CleanSpark, Inc. (NASDAQ:CLSK) Q4 2022 Results Conference Call December 14, 2022 4:30 PM ET Company Participants Isaac Holyoak - Chief Communications Officer Zach Bradford - CEO Gary Vecchiarelli - CFO Conference Call Participants Mike Colonnese - H.C. Wainwright Josh Siegler - Cantor Fitzgerald Brian Dobson - Jardine Capital Markets Greg Lewis - BTIG Operator Good afternoon. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________ Commission file number: 001-39187 CleanSpark, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0449945 (State or other jurisdiction o ...

CleanSpark, Inc. (NASDAQ:CLSK) Q3 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants Isaac Holyoak - Chief Communications Officer Zach Bradford - Chief Executive Officer Gary Vecchiarelli - Chief Financial Officer Conference Call Participants Mike Colonnese - H.C. Wainwright & Co. Greg Lewis - BTIG Operator Good afternoon. My name is David, and I will be your conference operator today. At this time, I’d like to welcome everyone to the CleanSpark Fiscal Year 2022 Q3 Earnings Call. A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number: 001-39187 CleanSpark, Inc. (Exact name of Registrant as specified in its charter) Nevada 87-0449945 (State or other jurisdic ...

CleanSpark, Inc. (NASDAQ:CLSK) Q2 2022 Results Conference Call May 10, 2022 4:30 PM ET Company Participants Rachel Silverstein - Senior Vice President, Compliance and General Counsel Zach Bradford - Chief Executive Officer Gary Vecchiarelli - Chief Financial Officer Conference Call Participants Tyler DiMatteo - BTIG Operator Good afternoon and welcome to the CleanSpark Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event ...