CleanSpark (CLSK) ended the recent trading session at $7.09, demonstrating a -0.14% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.43%.Shares of the company have depreciated by 40.29% over the course of the past month, underperforming the Finance sector's loss of 2.71% and the S&P 500's gain of 2.08%.Investors will be eagerly watching for the performanc ...

CleanSpark, Inc. (NASDAQ:CLSK) Q4 2023 Earnings Conference Call November 30, 2023 4:30 PM ET Company Participants Isaac Holyoak - Chief Communications Officer Zach Bradford - Chief Executive Officer Gary Vecchiarelli - Chief Financial Officer Conference Call Participants Michael Colonnese - H.C. Wainwright Joshua Siegler - Cantor Fitzgerald Gregory Lewis - BTIG Brian Dobson - Chardan Capital Markets Operator Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I w ...

Bitcoin Mining Operations - Bitcoin mining has become the company's principal revenue-generating business activity, with plans to acquire additional facilities, equipment, and infrastructure capacity to expand operations[411] - The company acquired two bitcoin mining facilities in Dalton, GA for $9,389 thousand, with a combined capacity of 20 megawatts and approximately 6,000 miners[469] - As of September 30, 2023, the company held 2,243 bitcoin, compared to 595 bitcoin in 2022[512] - The company's total bitcoin balance at the end of fiscal year 2023 was $56,241 thousand, compared to $11,147 thousand in 2022[493] - The company's outstanding deposits for miners and mining equipment as of September 30, 2023 totaled $75,959 thousand, compared to $12,497 thousand in 2022[506] - The company recognized net bitcoin mining revenue of approximately $168.1 million for the year ended September 30, 2023[149] - The company's bitcoin holdings as of September 30, 2023, amounted to approximately $56.2 million, classified as current assets[150] - The company operates five data centers in Georgia with a total developed capacity of 230 MW and is developing an additional 150 MW in Sandersville, GA[69] - The company hosts 50 MW of capacity through a partner in Massena, NY[69] - The global network hashrate is increasing, requiring the company to acquire new miners to maintain competitiveness[48] Lease Obligations and Terms - The company's operating leases are primarily for office spaces and finance leases related to equipment used at its data center[407] - The company's weighted-average remaining lease term for operating leases is 3.8 years, with a weighted-average discount rate of 5.40%[409] - The company's weighted-average remaining lease term for finance leases is 0.9 years, with a weighted-average discount rate of 5.50%[409] - The company's total lease obligations for fiscal years 2024 to 2028 amount to $4,603 thousand[405] - The company's operating cash outflows from operating leases increased from $131 thousand in September 2022 to $274 thousand in September 2023[409] - The company's financing cash outflows from finance leases decreased from $519 thousand in September 2022 to $301 thousand in September 2023[409] - The company's present value of lease liabilities as of September 30, 2023 was $700 for operating leases and $140 for finance leases[472] - The company entered into a 65-month lease for 4,552 rentable square feet at an initial base rent of $11, increasing 3% annually[63] Financial Performance and Losses - The company's loss from continuing operations attributable to common shareholders increased from $40,425 thousand in September 2022 to $132,160 thousand in September 2023[439] - Bitcoin impairment loss for September 30, 2023 was $7,163 thousand, compared to $12,210 thousand in 2022[443] - Total impairment loss for September 30, 2023 was $7,163 thousand, compared to $24,258 thousand in 2022[443] - The company's goodwill impairment in fiscal 2022 was due to a sustained downturn in the price of bitcoin[445] - The company's total revenues for the twelve months ended September 30, 2023 were $158, compared to $9,667 for the same period in 2022[468] - The company's net loss attributable to common shareholders for the twelve months ended September 30, 2023 was $(4,429), compared to $(17,237) for the same period in 2022[468] - The company's loss from continuing operations before provision for income taxes for the year ended September 30, 2023 was $(131,303), compared to $(40,089) for the same period in 2022[484] - The company's effective income tax rate for the period ended September 30, 2023 was (0.65%), compared to 0% for the same period in 2022[484] Investments and Assets - The company's derivative investment asset and investment in debt security totaled $3,566 thousand as of September 30, 2022[432] - The company's derivative investment asset as of September 30, 2023 was $2,697 thousand, classified as Level 3[447] - The company's investment in debt security as of September 30, 2023 was $726 thousand[447] - The company's total investments as of September 30, 2023 were $3,423, compared to $3,566 as of September 30, 2022[494] - Total fair value of investment in Derivative assets as of September 30, 2023, is $2,697, compared to $2,956 in 2022[498] - The company purchased 1,000 shares of Series B Preferred Stock of ILAL for $500, accruing at 12% per annum[496] - The company recognized an unrealized gain or loss on the fair valuation of the embedded derivative feature of ILAL preferred stock as income in the Consolidated Statements of Operations and Comprehensive Loss[514] Property and Equipment - The company purchased the College Park Property for $4,712, which includes a 41,387 square feet office/warehouse building[45] - The company purchased 16.35 acres of land in Sandersville, GA, for $1,400, reclassified as a finance lease[505] - The company placed in service property and equipment worth $231,135 in 2023, including $175,558 in miners and mining equipment[518] - The company purchased the Eastern Property for $4,100, with an additional $560 in building improvements, expected to be completed in Q1 2024[504] - Depreciation expense for the year ended September 30, 2023, was $118,615, up from $47,082 in 2022[502] - Net intangible assets as of September 30, 2023, were $4,603, down from $6,485 in 2022[520] Risks and Legal Issues - The company does not maintain its own insurance for bitcoin holdings, relying on Coinbase's insurance, which may be insufficient[26] - The company faces risks from technological obsolescence and supply chain disruptions for cryptocurrency hardware[47] - The company may need to raise additional capital through public offerings, which could dilute existing stockholders' interests[37] - The company is vulnerable to legal actions due to potential defects in legacy energy products[51] - The company's stock price may be adversely affected by negative or discontinued analyst coverage[38] - The company is subject to a shareholder class action lawsuit, which may result in material adverse effects on its business and operations[59] - The company's stock price is increasingly correlated with bitcoin trading prices due to its expanding bitcoin mining business[58] - The company may incur additional compliance costs if subjected to CFTC regulations regarding bitcoin transactions[53] Compliance and Internal Controls - The company incurred significant costs due to compliance with public company regulations, including Sarbanes-Oxley Act Section 404 requirements[40] - The company revised its disclosures in response to SEC staff comments on revenue recognition, bitcoin impairment, and clean energy usage[74] - The company's internal control over financial reporting was deemed ineffective as of September 30, 2023, due to a material weakness[152] - The company recorded a valuation allowance of $54,608 for deferred tax assets as of September 30, 2023, up from $28,756 in 2022[528] Discontinued Operations - Cash provided by discontinued operations for the fiscal year ended September 30, 2023 was based on winding down operations, including receipt of payments from accounts receivable, payments of accounts payable, and cash generated from the sale of assets[156] - Cash used in the operating activities of the energy segment (discontinued operations) for the year ended September 30, 2022 was $6,362[156] Bitcoin Market and Halving - Bitcoin mining reward halved from 12.5 to 6.25 bitcoin on May 11, 2020, with the next halving estimated in April 2024[2] - Currently, more than 19 million bitcoin are in circulation, with a total cap of 21 million expected around 2140[2] Acquisitions and Financing - The total purchase price for the Mawson Property acquisition was $33,821, including $13,500 in cash, $4,803 in common stock, and $6,500 in seller financing[478] - The company's total consideration for the Property and miners acquisition was $23,892, including $19,772 in cash, $1,962 in financing, and $2,158 in mortgage assumption[490] - The company borrowed a net $1,937 against the equity of the real property purchased in April 2023, with a two-year term and 10% interest rate[476] Accounts Receivable and Payable - The company's accounts receivable, net, decreased from $27 thousand in September 2022 to $5 thousand in September 2023[433]

CleanSpark, Inc. (NASDAQ:CLSK) Q3 2023 Earnings Call Transcript August 9, 2023 4:30 PM ET Company Participants Isaac Holyoak - Chief Communications Officer Zachary Bradford - CEO Gary Vecchiarelli - CFO Conference Call Participants Mike Colonnese - H.C. Wainwright Josh Siegler - Cantor Fitzgerald Tyler DiMatteo - BTIG Brian Dobson - Chardan Operator Ladies and gentlemen, good afternoon. My name is Abby and I'll be your conference operator today. At this time, I would like to welcome everyone to CleanSpark's ...

UNITED STATES Washington, D.C. 20549 ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 ☐ 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 of incorporation or organization) (I.R.S ...

What are Block Rewards? NASDAQ: CLSK & We care about the environment and believe that bitcoin miners have an important role to play in decarbonizing our economy. We source sustainable energy and strive to constantly optimize our operations to make them more efficient. We collaborate with utilities to make the grid better for everyone. • Quarterly management updates NASDAQ: CLSK & What Do Miners Do? Value growth for the greater good. | --- | --- | --- | |-------------------|-------|-------| | | | | | White | ...

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 ...