Financial Data and Key Metrics Changes - The company's revenue for Q1 2025 was $162.3 million, representing a 120% increase compared to the same period last year [14][46] - Net income reached $246.8 million, or $0.85 per basic share, with adjusted EBITDA growing to $321.6 million [14][53] - The average price of Bitcoin during the quarter exceeded $83,000, with a peak of $108,000, while the marginal cost per coin was approximately $34,000, a $2,000 improvement from the prior quarter [15][52] Business Line Data and Key Metrics Changes - The company produced 4% less Bitcoin compared to the same quarter last year, despite a significant increase in average Bitcoin price [46] - The average revenue recognized per Bitcoin produced in Q1 was almost $84,000, a 130% increase year-over-year [46] - Fleet efficiency improved from 21.94 joules per terahash to 17.59 joules per terahash, marking a 20% improvement [50] Market Data and Key Metrics Changes - The company closed the quarter with a total Bitcoin treasury of 9,952, which increased to 10,556 by the end of the following month [16] - The cost of power for the first quarter was $0.049 per kilowatt hour, slightly higher than the previous quarter [54] Company Strategy and Development Direction - The company aims to reach 50 exahash by the first half of 2025, fully funded without relying on equity [12] - A strategic focus on operational excellence and capital stewardship has positioned the company as the largest Bitcoin producer in the U.S. [7][11] - The company is exploring selective acquisition opportunities, particularly in regions with strong power contracts [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment shifting positively for Bitcoin mining, particularly with recent support from political leaders [32][33] - The company is committed to responsible growth and operational excellence, emphasizing the importance of energy policy in shaping the industry's future [34][35] Other Important Information - The company secured a $650 million convertible bond to fund growth and share buybacks, reflecting a strong balance sheet with total assets of nearly $2.8 billion [11][59] - The company celebrated its fifth anniversary of uplisting to NASDAQ, highlighting resilience and commitment to growth [35][36] Q&A Session Summary Question: Details on Bitcoin treasury management strategy - The company is evaluating counterparties and options for its Bitcoin treasury management, adopting a cautious approach to leverage [71][72] Question: Cadence of cash rate growth towards 50 exahash - The company expects a steady increase in exahash over the next six months, primarily through existing sites [75] Question: Management philosophy driving operational improvements - The management focuses on the intersection of various factors that contribute to profitability, emphasizing perseverance and dedication [80][82] Question: Growth strategy beyond 50 exahash - The company aims to continue scaling responsibly, ensuring that each additional exahash contributes positively to cash flow [128] Question: Community partnerships and utility relationships - The company has seen a shift in community sentiment towards welcoming Bitcoin mining, recognizing its economic benefits [133][135]

Core Viewpoint - CleanSpark, Inc. is expected to perform strongly in 2025, with a Buy rating and a price forecast of $27 from H.C. Wainwright analyst Mike Colonnese [1][2]. Financial Performance - CleanSpark reported first-quarter revenue of $162.3 million, exceeding analyst estimates of $150.87 million [1]. - The revenue estimate for 2025 is maintained at $854.9 million, while the adjusted EBITDA forecast has been raised to $663.2 million from $411.2 million [4]. Hashrate and Efficiency - CleanSpark's hashrate surpassed 40 EH/s in January, with expectations to reach 50 EH/s in the first half of 2025 [1][2]. - The impressive results are attributed to a significant increase in deployed hash rate, improved fleet efficiency, reduced production costs, and lower operating expenses [3]. Market Outlook - The analyst remains optimistic about Bitcoin prices in 2025, with estimates based on a Bitcoin price of $98,866 and an average network hash rate of 837 EH/s [4]. - CleanSpark is considered one of the top Bitcoin miners, supported by an excellent management team [3]. Stock Performance - CLSK shares have increased by 15.3%, trading at $11.96 [5].

Core Viewpoint - CleanSpark (CLSK) shows significant upside potential with a mean price target of $23.43, indicating a 125.7% increase from its current price of $10.38 [1] Price Targets - The mean estimate consists of seven short-term price targets with a standard deviation of $4.50, suggesting variability in analyst predictions [2] - The lowest estimate of $17 indicates a 63.8% increase, while the highest estimate suggests a 189% surge to $30 [2] - A low standard deviation indicates strong agreement among analysts regarding price movement direction [7] Analyst Sentiment - Analysts exhibit growing optimism about CLSK's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 63.9%, with no negative revisions [10] - CLSK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Price targets can mislead investors, as empirical research shows they rarely indicate actual stock price movements [5] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - While price targets should not be ignored, they should be approached with skepticism and not be the sole basis for investment decisions [8]

Group 1 - CleanSpark reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and compared to a loss of $0.02 per share a year ago, indicating an earnings surprise of 12.50% [1] - The company posted revenues of $162.31 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.28%, and showing significant growth from year-ago revenues of $73.79 million [2] - CleanSpark shares have increased approximately 11.9% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] Group 2 - The earnings outlook for CleanSpark is favorable, with current consensus EPS estimates of $0.05 on $193.58 million in revenues for the coming quarter and $0.18 on $788.8 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 27% of over 250 Zacks industries, indicating a positive outlook for the industry [8] - CleanSpark has a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6]

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 December 31, 2024 ☐ 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 juri ...

Financial Performance - Quarterly revenue reached $162.3 million, a 120% increase from $73.8 million in the same prior fiscal quarter[4] - Net income for the quarter was $241.7 million, with a basic EPS of $0.85, compared to $25.9 million and $0.14 per share in the prior year[8] - Adjusted EBITDA increased to $321.6 million from $69.1 million year-over-year[8] - Bitcoin mining revenue for Q4 2024 reached $162.3 million, a significant increase of 120% compared to $73.8 million in Q4 2023[20] - Net income for Q4 2024 was $246.8 million, a substantial increase from $25.9 million in Q4 2023, reflecting a year-over-year growth of 855%[20] - Adjusted EBITDA for Q4 2024 was $321.6 million, compared to $69.1 million in Q4 2023, representing a year-over-year increase of 366%[23] - Income from operations per common share (basic) for Q4 2024 was $0.85, up from $0.14 in Q4 2023[21] - The company reported a gain on bitcoin collateral of $42.5 million in Q4 2024, contributing positively to overall income[20] - Income tax expense for Q4 2024 was $9.2 million, compared to $1.4 million in Q4 2023, reflecting increased profitability[20] - Preferred stock dividends increased to $5.1 million in Q4 2024 from $579,000 in Q4 2023, indicating a rise in shareholder returns[20] Cost and Expenses - The marginal cost to mine bitcoin decreased by 6% to approximately $34,000 per coin[1] - Total costs and expenses for Q4 2024 were $(47.7) million, compared to $45.3 million in Q4 2023, indicating a reduction in overall expenses[20] Assets and Liabilities - Total assets amounted to $2.8 billion, with total current assets at $1.2 billion[8] - Current liabilities were $96.7 million, while total liabilities stood at $757.7 million[8] Company Strategy and Growth - CleanSpark aims to achieve 50 EH/s in the first half of 2025 through regional expansion in Wyoming, Tennessee, and Georgia[2] - The company closed a $650 million convertible bond offering, enhancing its capital strategy[3] Bitcoin Holdings - The company’s bitcoin treasury grew to over 10,500 bitcoins, all self-mined in the USA[3]

Core Insights - CleanSpark, Inc. achieved significant operational milestones in January 2025, including surpassing a hashrate of 40 EH/s and holding over 10,500 bitcoins in treasury [2][8] - The company reported a month-over-month improvement in fleet efficiency of more than 8% [1][2] - Despite adverse weather conditions, CleanSpark continued construction on new facilities in Tennessee, Georgia, and Wyoming, aiming for a midyear goal [2] Operational Performance - The average hashrate for January was 34.76 EH/s, with an average fleet efficiency of 17.37 J/Th, resulting in an average daily bitcoin production of 20.19 [4][8] - A total of 626 bitcoins were mined in January, with a peak production of 22.89 bitcoins in a single day [4][8] - The company sold 22.47 bitcoins at an average price of approximately $100,412 per bitcoin during the month [4][8] Infrastructure Developments - A new 12 MW site in Twin City, Georgia, is nearing completion, contributing approximately 0.7 EH/s to the operating hashrate, with an additional 0.1 EH/s expected soon [5] - In Cheyenne, Wyoming, the company is on track to complete a technologically advanced immersion environment, which is expected to add 5 EH/s to the hashrate once fully operational [6] Financial Position - As of January 31, 2025, CleanSpark held a total of 10,556 bitcoins [8] - The company has a contracted power capacity of 873 MW across its facilities [8]

Group 1 - CleanSpark Inc. will discuss its fiscal first quarter 2025 financial results via a live webcast on February 6, 2025 [1] - The company is recognized as America's Bitcoin Miner® and operates a portfolio of mining facilities across the United States [2] - CleanSpark focuses on optimizing its mining facilities to deliver superior returns to shareholders by leveraging low-cost, high-reliability energy [2] Group 2 - The webcast will begin at 4:30 p.m. EST / 1:30 p.m. PST [1] - Downloadable files, including transcripts, will be available on the company website 48 hours after the event [1] - CleanSpark positions itself at the intersection of Bitcoin, energy, operational excellence, and capital stewardship [2]

Core Viewpoint - CleanSpark (CLSK) has shown strong stock performance recently, with a return of +10.1% over the past month, outperforming the Zacks S&P 500 composite's +2.5% and the Zacks Financial - Miscellaneous Services industry's +4.2% [1] Earnings Estimate Revisions - The consensus estimate for CleanSpark's current quarter is a loss of $0.09 per share, reflecting a year-over-year change of -350% [4] - For the current fiscal year, the consensus earnings estimate is $0.18, indicating a change of +169.2% from the previous year [4] - The next fiscal year's consensus earnings estimate is $0.81, showing a change of +350% from the prior year [5] - The Zacks Rank for CleanSpark is 3 (Hold), influenced by the recent changes in earnings estimates and other related factors [6] Revenue Growth - The consensus sales estimate for the current quarter is $151.88 million, representing a year-over-year change of +105.8% [8] - For the current fiscal year, the sales estimate is $788.8 million, indicating a change of +108.1%, while the next fiscal year's estimate is $1.08 billion, reflecting a +36.9% change [8] Last Reported Results - CleanSpark reported revenues of $89.28 million in the last quarter, a year-over-year increase of +96.1% [9] - The EPS for the same period was -$0.27, compared to -$0.12 a year ago [9] - The company had a revenue surprise of -0.09% compared to the Zacks Consensus Estimate and an EPS surprise of -8% [10] Valuation - CleanSpark is graded F on the Zacks Value Style Score, indicating it is trading at a premium to its peers [14]

Group 1 - CleanSpark's stock closed at $11.14, reflecting a +1.64% increase, outperforming the S&P 500's gain of 0.61% [1] - Over the past month, CleanSpark's stock has risen by 2.81%, which is below the Finance sector's gain of 4.36% but above the S&P 500's gain of 2.08% [1] Group 2 - Analysts expect CleanSpark to report earnings of -$0.09 per share, indicating a year-over-year decline of 350%, while revenue is anticipated to be $151.88 million, a 105.82% increase compared to the previous year [2] - For the entire fiscal year, earnings are projected at $0.18 per share and revenue at $788.8 million, representing increases of +169.23% and +108.14% respectively from the prior year [3] Group 3 - Recent adjustments to analyst estimates for CleanSpark are crucial as they reflect changing business trends and analysts' outlook on the company's health and profitability [4] - The Zacks Rank system, which evaluates these estimate changes, indicates that CleanSpark currently holds a Zacks Rank of 3 (Hold) [6] Group 4 - CleanSpark's Forward P/E ratio is 60.89, significantly higher than the industry average of 10.47, indicating a premium valuation [7] - The Financial - Miscellaneous Services industry, to which CleanSpark belongs, has a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [7]