Core Viewpoint - CleanSpark, Inc. plans to offer $550 million in convertible senior notes due 2030, subject to market conditions, to qualified institutional buyers [1][10] Group 1: Offering Details - The company may grant initial purchasers an option to buy an additional $100 million of the convertible notes within 13 days of the initial issuance [2] - The convertible notes will be senior unsecured obligations, maturing on June 15, 2030, and will not bear regular interest [4] - The notes will be convertible into cash, shares of common stock, or a combination, with terms determined at pricing [5] Group 2: Use of Proceeds - Net proceeds will be used for capped call transactions, repurchasing up to $125 million of common stock, and repaying amounts under the line of credit with Coinbase, among other corporate purposes [3] Group 3: Capped Call Transactions - The company expects to enter into capped call transactions to reduce potential dilution upon conversion of the notes [6][7] - Initial hedging activities related to the capped call transactions may influence the market price of the common stock and convertible notes [8] Group 4: Share Repurchase - The company plans to repurchase shares of its common stock from certain investors in the convertible notes at the closing price on the pricing date [9]

CleanSpark ((CLSK) is a $4 billion technology enterprise that call's itself "America's Bitcoin Miner."I ran a year-to-date look at CLSK shares vs some other prominent miners. While CLSK is up nearly 20%, the big dog Marathon Digital ((MARA) is flat for the year, despite their big Bitcoin acquisitions.Meanwhile Iris Energy ((IREN) is up over 90% while Riot Platforms ((RIOT) is down over 20%.Here's how CleanSpark describes their mission...CleanSpark responsibly develops infrastructure for Bitcoin, an essentia ...

CleanSpark Inc CLSK shares were down on Tuesday, even after the company reported upbeat fourth-quarter results.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.HC Wainwright On CleanSparkAnalyst Mike Colonnese reiterated a Buy rating and price target of $27.CleanSpark, a Bitcoin mining company that offers investors "pure-play exposure" to the world's largest crypto, reported "solid" results for the fourth quarter and fiscal 2024, Colonnese said in a note ...

Mining Operations - As of September 30, 2024, CleanSpark operated approximately 188,500 bitcoin mining machines with a hashrate capacity of approximately 27.6 EH/s, and mined 7,092 bitcoins in fiscal year 2024, a 3% increase from 6,903 bitcoins in fiscal year 2023[22] - The company has developed a total of 656 MW of operational capacity across its facilities, supporting a total operational hashrate of 27.6 EH/s, with significant contributions from Georgia (483 MW, 20.6 EH/s) and Tennessee (79 MW, 3.5 EH/s)[31] - CleanSpark plans to develop an additional 211.5 MW of capacity, expected to support approximately 50 EH/s of mining capacity, enhancing its operational efficiency[21] - CleanSpark's mining operations are primarily powered by renewable energy sources, although the energy mix has shifted due to expansion efforts, now including both non-carbon and carbon sources[36] - CleanSpark's mining operations are geographically distributed across Georgia, Tennessee, Mississippi, and Wyoming, with ongoing construction in Wyoming expected to be operational in fiscal year 2025[30] - The company has shifted its focus exclusively to bitcoin mining operations, having deemed its energy operations as discontinued as of June 30, 2022[48] - The company no longer provides traditional data center services, with all capacity now dedicated to bitcoin mining activities as of September 30, 2023[49] - The company has terminated its hosting arrangement with GRIID Infrastructure, Inc. following its acquisition on October 30, 2024, integrating the 54 MW into its owned facilities[176] Financial Performance - The company has sustained cumulative net losses of $479,218 since inception through September 30, 2024, with a net loss from continuing operations of $145,777 for the fiscal year ended September 30, 2024[60] - The company has historically sold bitcoin to support operations and strategic growth, with management decisions influenced by market conditions and volatility[24] - Bitcoin mining revenue for the year ended September 30, 2024, was $378,968, an increase of $210,847 or 125% compared to $168,121 for the year ended September 30, 2023[197] - The net loss for the year ended September 30, 2024, was $145,777, an increase of $7,628 compared to a net loss of $138,148 for the year ended September 30, 2023[212] - Total bitcoin mining revenue from owned facilities reached $333,187,000 in 2024, compared to $127,827,000 in 2023, reflecting a 160.5% increase[1] - The cost of mining one bitcoin increased to $38,766 in 2024 from $21,362 in 2023, representing an 81.8% increase year-over-year[1] - Average revenue per bitcoin mined rose to $53,708 in 2024, up from $24,601 in 2023, marking a 118.5% increase[1] Operational Challenges - The company is subject to various risks, including potential changes in laws and regulations applicable to bitcoin mining and the possibility of increased compliance costs[56] - The company operates in a highly competitive bitcoin mining market, facing challenges in acquiring new miners and securing low-cost electricity[62] - The reliance on a limited number of suppliers for mining equipment poses risks, as any disruption could delay expansion efforts[64] - The company has faced supply chain disruptions due to inflation and labor shortages, which could impact expansion and acquisition timelines[68] - The company may require additional financing for operations and expansion, which may not be available on favorable terms[71] - The company may experience reduced mining rewards if the mining pool fails to accurately distribute rewards, impacting overall business operations[79] Regulatory and Compliance Issues - The company has a non-renewal agreement with Coinmint for hosting services, set to expire on January 1, 2025, after which all operational capacity will be moved to wholly owned sites[25] - The company has terminated its agreement with a hosting facility in New York and will cease co-location activities in the state after January 1, 2025, due to regulatory concerns[40] - Regulatory changes could require the company to register as a money services business (MSB), incurring significant compliance costs[126] - Future regulatory developments regarding bitcoin could impose additional compliance costs, potentially impacting the company's financial condition[130] - Increased scrutiny regarding ESG practices may lead to additional costs and operational risks for the company[109] Risk Factors - The company may face significant risks from market disruptions, including price volatility and loss of confidence in digital assets, following the bankruptcies of major players like FTX[90] - The company relies on Coinbase for bitcoin custody, and any loss or destruction of bitcoins may not be recoverable, posing a risk to financial stability[93] - Security breaches could lead to loss of bitcoin holdings and damage to the company's reputation, adversely affecting investments[97] - The company does not maintain its own insurance coverage for its bitcoin holdings, which are held in custody by Coinbase, exposing it to potential losses[123] - The treatment of bitcoin held in custody during a custodian's bankruptcy is uncertain, posing risks to asset recovery[112] Staffing and Management - As of September 30, 2024, the company employed 270 staff members, with 256 being full-time[45] - The management team is critical to the company's success, and any loss of key personnel could adversely affect operations and growth prospects[65] - Significant costs are incurred due to compliance with public company laws and regulations, impacting management and accounting resources[153] Strategic Growth and Acquisitions - The company has a strategic focus on expanding its infrastructure through both organic growth and acquisitions, including the recent acquisition of GRIID, which added three Tennessee locations to its portfolio[29] - Recent strategic acquisitions in Georgia, Mississippi, Wyoming, and Tennessee are part of the company's growth strategy, but future acquisitions may dilute stockholder ownership[67] - The company aims to continue increasing its computing power through infrastructure expansion and strategic acquisitions[177] Energy and Cost Management - Energy expenses accounted for 39.7% of bitcoin mining revenues in 2024, down from 51.5% in 2023, indicating improved cost management[1] - Total energy expense for owned facilities was $132,192,000 in 2024, up from $65,824,000 in 2023, a 100% increase[1] - The average cost per KWH utilized in owned facilities was $0.046 in 2024, slightly down from $0.048 in 2023[1] Cybersecurity and Data Management - The cybersecurity program is aligned with the National Institute of Standards and Technology Cybersecurity Framework 2.0, aimed at managing data confidentiality and integrity[159] - The Board of Directors oversees the management of cybersecurity risk through its audit committee and the IT Steering and Risk Committee[160]

Mines 622 bitcoin and achieves daily production high of over 21 bitcoinIncreases hashrate and efficiency month over month by over 7% and 6% respectivelyLAS VEGAS, Dec. 3, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner® (the "Company"), today released its unaudited bitcoin mining and operations update for the month ending November 30, 2024."Our teams have been relentlessly executing, making progress towards our year-end hashrate goal of 37 EH/s while improving our efficiency," s ...

Bitcoin miner CleanSpark (NASDAQ: CLSK ) posted fourth quarter earnings on Monday night, and the stock is off about 6% pre-market following the report. The last time I covered CleanSpark was in earlyJosh is the leader of the investing group Timely Trader where he focuses on limiting risk and maximizing potential reward. Features of Timely Trader include: real-time alerts, a model portfolio, technical charts, sentiment indicators, and sector analysis to find the best trading opportunities. Learn more.Josh Ar ...

The stock market had been running behind the massive rally in shares of MicroStrategy Inc. NASDAQ: MSTR, especially as it had become common knowledge that the company’s Bitcoin holdings would bring its valuation to new highs when and if the cryptocurrency markets rallied higher. However, that euphoria was soon met with a new reality. Investors began scrutinizing how MicroStrategy acquired Bitcoin, noting it wasn’t the cleanest approach, with shareholder dilution and increased leverage funding the purchases. ...

Financial Data and Key Metrics - Revenue for the fiscal year 2024 was $378.9 million, a 125% increase from $164.8 million in the previous year [7] - Adjusted EBITDA for the year was $245.8 million, an 882% increase from $25 million in 2023 [8] - Gross profit for the year was $213.5 million, a 185% increase from the prior year [32] - GAAP net loss for the year was $145.8 million, largely due to a non-cash impairment expense of $197 million [33] - Bitcoin production for the year was approximately 7,100 Bitcoins, compared to 6,900 Bitcoins in fiscal year 2023 [31] Business Line Data and Key Metrics - The company's operational hash rate reached 33.5 exahash per second, up from 9.6 exahash per second the previous year [14] - The company added over 425 megawatts to its operational power capacity, bringing the total portfolio to over 726 megawatts [14] - The current fleet efficiency stands at 19 joules per terahash, significantly lower than the fleet average of 28.4 joules per terahash from September of last year [17] Market Data and Key Metrics - The company has a geographically diverse portfolio of mining assets in Georgia, Wyoming, Tennessee, Mississippi, and New York [13] - The company's all-in power costs for fiscal year 2024 were $0.046 per kilowatt hour, lower than $0.048 per kilowatt hour in fiscal 2023 [34] - The average cost to mine Bitcoin in 2024 was approximately $21,400 for wholly-owned facilities [35] Company Strategy and Industry Competition - The company remains committed to Bitcoin mining as a vertically integrated pure play operation, contrasting with competitors diversifying into AI and high-performance computing [24] - The company's growth strategy includes greenfield development, organic expansion, and opportunistic acquisitions [11][18] - The company aims to achieve 50 exahash per second in 2025 and is focused on increasing installed hash rate and boosting monthly Bitcoin production [26][27] Management Commentary on Operating Environment and Future Outlook - The company is well-positioned to capitalize on the current bull market and expects to exceed 1 gigawatt of contracted capacity across its portfolio in 2025 [14][27] - The company anticipates a friendlier regulatory environment and increased capital market opportunities following the recent presidential election [57] - The company is focused on operational efficiency, driving strong margins, and consistent performance [26] Other Important Information - The company closed the acquisition of grid infrastructure in October, which included 68 megawatts of developed infrastructure in Tennessee and over 400 megawatts of identified upside expansion opportunity [21] - The company renewed its insurance policy in November, cutting the comparable rate by 25% [39] - The company has approximately $121 million in cash and is rapidly approaching 10,000 Bitcoin in holdings, representing almost $1 billion at current Bitcoin prices [40] Q&A Session Summary Question: Why have miners lagged Bitcoin this year? - The company believes that miners, including itself, have meaningfully outperformed Bitcoin over a two-year period and expects another upswing as the market better understands the miners' capabilities [49] Question: How is the company approaching the ASIC market? - The company has locked in price certainty for ASICs through 63 exahash and has the ability to take down additional units with price certainty [50][51] Question: What are the paths to generate yield on Bitcoin holdings? - The company is exploring strategies such as providing covered calls, lending Bitcoin, and providing liquidity to ETFs [56] Question: What trends are expected to drive mining in 2025? - The company expects a friendlier regulatory environment, increased capital market opportunities, and continued focus on scale and efficiency [57][58] Question: How is the company prioritizing build versus buy decisions? - The company is focusing more on building hardened immersion-cooled infrastructure in rural areas and may consider air-cooled infrastructure for acquisitions [66][67] Question: What is the outlook for fleet efficiency? - The company expects incremental improvements in fleet efficiency and believes immersion cooling will play a key role in keeping up with efficiency advancements [70][72] Question: What are the expectations for CapEx in 2025? - The company expects to invest roughly $200 million in infrastructure and has secured advantageous prices for miners [77] Question: What is the company's view on buying Bitcoin outright? - The company believes the best use of capital is buying or building facilities that produce Bitcoin, but it is not opposed to buying Bitcoin for strategic reasons [93][94]

CleanSpark � FY2024 Fourth Quarter Earnings Call CleanSpark is America's Bitcoin Miner® Safe Harbor Statement This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for growth and the Company's bitcoin holdings and other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words su ...

Revenue Growth - Revenue grew 125% year over year to $378.9 million in FY 2024[1][5] - Bitcoin mining revenue increased to $378,968K in 2024, up 125.4% from $168,121K in 2023[19] - Total revenues rose to $378,968K in 2024, a 125.1% increase from $168,408K in 2023[19] Hashrate and Bitcoin Production - Current hashrate surpassed 33.5 EH/s, on track to reach 37 EH/s by year-end[1] - Company produced approximately 7,100 BTC in FY 2024[3] - Company aims to reach 50 EH/s and beyond in 2025[2] Financial Performance - Adjusted EBITDA increased to $245.8 million, up from $25.0 million in the prior fiscal year[6] - Net loss for FY 2024 was ($145.8) million, compared to ($138.1) million in the prior year[5] - Adjusted EBITDA improved significantly to $245,848K in 2024, up 882.5% from $25,028K in 2023[22] - Net loss attributable to common shareholders widened to $149,199K in 2024, up 8.0% from $138,148K in 2023[19] Assets and Holdings - Total assets reached $2.0 billion as of September 30, 2024[6] - Bitcoin holdings valued at $509.5 million, including 8,049 BTC at $63,301 per BTC[6] - Total current assets stood at $705.4 million as of September 30, 2024[6] Operating Portfolio Expansion - Operating portfolio expanded to 726 MW, adding 423 MW in FY 2024[2] Expenses and Impairment - Cost of revenues (excluding depreciation and amortization) grew to $165,516K in 2024, up 76.9% from $93,580K in 2023[19] - Impairment expense for fixed assets surged to $197,041K in 2024, compared to $0 in 2023[19] - Depreciation and amortization expenses increased to $154,609K in 2024, up 28.1% from $120,728K in 2023[19] Shareholder Metrics - Weighted average common shares outstanding - basic expanded to 216,860,819 in 2024, a 111.2% increase from 102,707,509 in 2023[20]