Key Takeaways CLSK shares fell after FY25 earnings of $1.12 and $766.3M revenues came in below estimates.CleanSpark's 102% revenue surge was fueled by higher Bitcoin production and rising average revenue per coin.CLSK saw operating income reach $318M and adjusted EBITDA jump to $823.4M amid improved margins.CleanSpark, Inc. (CLSK) shares fell 3.4% during Tuesday’s extended trading session after the company reported lower-than-expected fiscal 2025 results. In fiscal 2025, CLSK reported earnings of $1.12 per ...

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Core Insights - CleanSpark Inc. emphasizes a flexible and strategic approach to managing its Bitcoin holdings, prioritizing monetization and cash generation over ideological commitments [1][3] - The company holds 13,011 BTC valued at $1.14 billion, making it the ninth-largest corporate holder of Bitcoin [2] - CleanSpark is open to selling part of its Bitcoin holdings if market conditions are favorable, contrasting with other companies that maintain a strict hold on their assets [3] Financial Performance - For fiscal 2025, CleanSpark reported revenue of $766.3 million, a significant increase from $379 million year-over-year [5] - The company achieved full-year earnings of $1.25 per share, a turnaround from a loss of 69 cents per share in the previous fiscal year [5] - CleanSpark is evolving into a "compute platform" to optimize value from both AI and Bitcoin workloads [5] Market Activity - As of the latest data, Bitcoin is trading at $87,266.97, reflecting a 0.93% increase in the last 24 hours [6] - CleanSpark's shares experienced a 2.29% drop in after-hours trading to $11.55, following a 2.96% increase during the regular trading session [6] - The company's growth potential is highlighted by a strong Edge Ranking of 99.73/100 in the growth category [6]

Financial Data and Key Metrics Changes - CleanSpark achieved record revenues of $766 million for fiscal year 2025, representing over 100% year-over-year growth [19] - Gross margin was 55%, a slight decrease of 1% year-over-year, which is notable given it was the first full year post-Bitcoin halving [8][19] - Adjusted EBITDA exceeded $800 million, with a normalized adjusted EBITDA from operations of approximately $305 million, reflecting a net margin of about 40% [20] - The company produced nearly 8,000 Bitcoin during the fiscal year, with an average marginal cost per Bitcoin slightly below $43,000 and average revenue per Bitcoin around $98,000 [19][20] Business Line Data and Key Metrics Changes - The Bitcoin treasury grew by nearly 62% to over 13,000 Bitcoin, generated entirely from the company's own hash rate [9] - The operational hash rate reached 50 exahash per second, with 100% U.S.-based infrastructure [8] - The company is deploying 19,000 S21 XP immersion units, expected to be completed in Q1 2026 [9][10] Market Data and Key Metrics Changes - CleanSpark's operational efficiency improved significantly, contributing to consistent gross margins despite market fluctuations [20] - The company is strategically positioned to support the growing demand for AI compute alongside Bitcoin mining [7][8] Company Strategy and Development Direction - CleanSpark is evolving into a digital infrastructure platform, focusing on opportunities in generative AI, grid balancing through Bitcoin mining, and high-performance computing [5][6] - The company aims to diversify revenue streams and enhance margins through a blended approach to monetizing its portfolio [8] - A significant focus is on securing tenants for AI campuses while expanding land and power capabilities [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in the HPC-AI space, citing strong inquiries for their facilities [43] - The company is confident in its ability to navigate market volatility and capitalize on opportunities due to its strong financial position [44] - CleanSpark is committed to maintaining operational excellence and leveraging its infrastructure-first model to maximize value [36][38] Other Important Information - CleanSpark completed its largest financing ever with a $1.15 billion upsized 0% convertible note, which included a stock buyback of $460 million [17][33] - The company has secured a 285 MW site in Texas for AI factory development, with a multi-gigawatt pipeline of additional opportunities [12][13] Q&A Session Summary Question: Can you provide insight into client conversations and demand outlook for HPC-AI? - Management reported extensive discussions with potential clients, including strong interest in their Texas and Georgia sites, indicating robust demand in the HPC-AI space [43][44] Question: How does the company view pairing Bitcoin mining with HPC campuses? - Management sees potential in blending Bitcoin mining with HPC to provide power usage versatility, which could enhance operational flexibility [45][48] Question: What key milestones should investors look for in 2026 regarding HPC strategy? - Management highlighted the importance of the Texas and Sandersville sites, which are positioned for rapid deployment to meet 2026 demand [51][52] Question: What are the near-term expansion plans for Bitcoin mining? - The company plans to migrate Bitcoin mining operations to more remote locations, prioritizing efficiency and favorable utility rates [56][58] Question: How does the company plan to utilize its Bitcoin balance strategically? - Management intends to monetize the Bitcoin stack through yield strategies and opportunistic borrowing, maintaining flexibility in capital management [66] Question: What is the economic impact of the MOU with Submer? - The partnership with Submer is expected to enhance speed to market and reduce costs for AI and HPC infrastructure development [70][71]

Financial Data and Key Metrics Changes - CleanSpark achieved record revenues of $766 million for fiscal year 2025, representing over 100% year-over-year growth [19] - Gross margin was 55%, a slight decrease of 1% year-over-year, which is notable given it was the first full year post-Bitcoin halving [8][19] - Adjusted EBITDA for the year exceeded $800 million, with a normalized adjusted EBITDA from operations of approximately $305 million, translating to a net margin of about 40% [20] - The company reported a significant positive net income of about $365 million [20] Business Line Data and Key Metrics Changes - CleanSpark produced nearly 8,000 Bitcoin during the fiscal year, with an average marginal cost per Bitcoin slightly below $43,000 and average revenue per Bitcoin around $98,000 [19] - The operational hash rate reached 50 exahash per second, with 100% U.S.-based infrastructure [8] Market Data and Key Metrics Changes - The company has a Bitcoin treasury that grew by nearly 62% to over 13,000 Bitcoin, generated entirely from its own mining operations [9] - The average spot Bitcoin sales price for the fourth quarter was $111,721, with additional premiums generated per Bitcoin of $4,184, leading to an effective cash generated per Bitcoin of almost $116,000 [26] Company Strategy and Development Direction - CleanSpark is evolving into a digital infrastructure platform, focusing on opportunities in generative AI, grid balancing through Bitcoin mining, and high-performance computing [5][6] - The company is prioritizing a blended approach to grow and monetize its portfolio, aiming to diversify revenue and enhance margins [8] - A significant focus is on securing tenants for AI-ready locations while expanding land and power footprints to meet market demand [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in the HPC AI space, citing strong inquiries for their facilities [42] - The company is well-prepared for future growth, leveraging its strong balance sheet and operational excellence [6][36] - Management acknowledged the challenges in the market but emphasized their competitive position due to their efficient operations and strategic planning [43] Other Important Information - CleanSpark completed its largest financing ever with a $1.15 billion upsized 0% convertible note, which included a stock buyback of $460 million, reducing outstanding shares by over 10% [17][33] - The company has secured a 285-megawatt site in Texas for AI factory development, with plans for further expansion [12][34] Q&A Session Summary Question: Can you provide insight into client conversations and demand outlook for HPC AI? - Management reported extensive discussions with potential clients, indicating strong demand for their facilities, particularly in Texas and Georgia [42] Question: How do you view the pairing of Bitcoin mining with HPC campuses? - Management sees potential in blending AI, HPC, and Bitcoin mining to provide versatile power usage, which could benefit both operations [47] Question: What key milestones should investors look for in 2026 regarding HPC strategy? - Management highlighted the importance of speed to market and modular approaches in their development strategy, particularly at the Sandersville and Sealy sites [52][53] Question: What are the near-term expansion plans for Bitcoin mining? - Management indicated a shift of Bitcoin mining operations to more remote locations with favorable utility rates, while continuing to grow their operational capacity [56][58] Question: How should we think about the economic impact of the MoU with Submer? - Management emphasized the cost savings and speed to market advantages of their partnership with Submer, which is expected to enhance their competitive position [70]

Financial Data and Key Metrics Changes - CleanSpark achieved record revenues of $766 million for fiscal year 2025, representing over 100% year-over-year growth [17] - Gross margin was 55%, a slight decrease of 1% year-over-year, which is notable given it was the first full year post-halving of Bitcoin block rewards [7][17] - Adjusted EBITDA exceeded $800 million, with a normalized adjusted EBITDA from operations of approximately $305 million, translating to a net margin of about 40% [18] - The company reported a significant positive net income of about $365 million [18] Business Line Data and Key Metrics Changes - CleanSpark produced nearly 8,000 Bitcoin during the fiscal year, with an average marginal cost per Bitcoin slightly below $43,000 and average revenue per Bitcoin around $98,000 [17] - The Bitcoin treasury grew by nearly 62% to over 13,000 Bitcoin, generated entirely from the company's own mining operations [8] Market Data and Key Metrics Changes - The company reached an operational hash rate of 50 exahash per second, with 100% U.S.-based infrastructure [7] - The company has secured over a gigawatt of power under contract across its data centers, with nearly 300 megawatts in Texas scheduled to begin energization in early 2027 [10] Company Strategy and Development Direction - CleanSpark is evolving into a digital infrastructure platform, focusing on opportunities in generative AI, grid balancing through Bitcoin mining, and high-performance computing [5][6] - The company aims to diversify revenue streams and enhance margins through a blended approach to growing and monetizing its portfolio [6] - A strategic partnership with Submer aims to enhance energy efficiency and speed to market for AI data center development [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI compute and the company's ability to secure tenants for its AI-ready locations [36][39] - The company is focused on operational excellence and leveraging its strong balance sheet to capitalize on growth opportunities in the AI sector [6][33] Other Important Information - CleanSpark completed its largest financing ever with a $1.15 billion upsized 0% convertible note, which included a stock buyback of $460 million, reducing outstanding shares by over 10% [16][30] - The Digital Asset Management (DAM) strategy generated $9.3 million in premiums during the fourth quarter, with an annualized yield of approximately 12% [23][29] Q&A Session Summary Question: Can you provide insights on demand in the HPC AI space? - Management noted strong inquiries about the Sandersville site and additional traction at the Sealy, Texas site, indicating optimism about demand [36] Question: How will Bitcoin mining and HPC campuses be paired? - The company sees potential in blending AI, HPC, and Bitcoin mining to provide power usage versatility, which utilities find appealing [38] Question: What key milestones should investors look for in 2026 regarding HPC? - The focus will be on deployments at the Texas and Sandersville sites, with significant demand for critical IT loads expected [39] Question: What are the expansion plans for the Bitcoin mining business? - The company plans to migrate Bitcoin mining operations to more remote locations while prioritizing HPC AI at sites with quick access to fiber [42] Question: How will the Texas facility energization proceed? - The first 200 megawatts are scheduled to come online in the first half of 2027, with additional tranches in subsequent years [52] Question: What is the CapEx required for the Sandersville site to upgrade to HPC? - The facility is not currently set for HPC but has additional land secured for future construction, allowing for a smooth transition when ready [63]

Core Insights - CleanSpark reported a revenue of $766.3 million for the fiscal year 2025, more than double the previous year's revenue, driven by an expansion in bitcoin mining capacity and new financing [1] - The company achieved a net income of $346.5 million, or $1.25 per share, compared to a net loss of $145.8 million, or $0.69 per share, in the prior year [2] - Adjusted EBITDA increased to $823.4 million from $245.8 million year-over-year, influenced by the fair value change of CleanSpark's 13,033 BTC treasury [2] Financial Performance - CleanSpark's bitcoin mining operations grew to 50 EH/s, up from 27.6 EH/s at the end of fiscal year 2024 [2] - The company reported cash of $43 million, $1.2 billion in bitcoin, and $1 billion in working capital as of September 30 [5] - Total liabilities were reported at $1.0 billion, with stockholders' equity at $2.2 billion [5] Operational Developments - The company increased its contracted power by 43% to 1,027 MWs during the year [3] - CleanSpark closed a $1.15 billion zero-percent convertible transaction to fund infrastructure development and land and power acquisitions [3] - The company is building a compute platform to support both artificial intelligence and bitcoin workloads, with ongoing evaluations of its Georgia site for AI workloads [4]

Market Performance - U.S. equity markets experienced gains on November 25, 2025, with the Dow Jones Industrial Average rising 664.18 points, or 1.4%, to close at 47,112.45, marking its largest one-day gain since August 22, 2025 [2] - The S&P 500 increased by 60.76 points, or 0.9%, finishing at 6,765.88, now just 1.8% away from its all-time high [2] - The Nasdaq Composite rose 153.59 points, or 0.7%, closing at 23,025.59, while the Russell 2000 index saw the largest gains at 2.1% [2] Economic Indicators - U.S. retail sales rose by 0.2% in September, below the expected 0.3%, while the Producer Price Index (PPI) increased by 0.3%, with the core PPI rising only 0.1% [4] - November U.S. consumer confidence data was reported at 88.7, the lowest since April [4] - Upcoming economic data includes GDP estimates, wholesale inventories, durable goods orders, and consumer spending metrics [5] Corporate News - Alphabet (GOOGL) shares surged 3.85% following the launch of its AI platform, Gemini 3, seen as a competitor to OpenAI's ChatGPT [6] - Nvidia (NVDA) and Advanced Micro Devices (AMD) shares fell 3.53% and 6.86%, respectively, due to reports of Meta Platforms considering Google's AI chips for its data centers [6] - Best Buy (BBY) shares rose 3.5% after reporting better-than-expected fiscal Q3 2026 earnings and raising its full-year outlook [6] - Abercrombie & Fitch (ANF) shares soared over 30% after a strong fiscal Q3 2026 profit report [6] - Kohl's (KSS) shares surged 36.4% after reporting a surprise profit [6] - Zoom Video Communications (ZM) shares climbed 12.87% following strong Q3 revenue growth and an increased share buyback program [6] Post-Market Earnings - Keysight Technologies (KEYS) shares jumped 8.41% after exceeding quarterly earnings estimates [11] - Alibaba (BABA) reported stronger revenue but fell short on profit forecasts, leading to a 2.1% decline in its U.S.-listed stock [11] - Dell Technologies (DELL) and HP Inc. (HPQ) reported earnings with a focus on AI server solutions and the AI PC market, respectively [11] - Other companies reporting included Autodesk Inc. (ADSK), Workday, Inc. (WDAY), and Nutanix, Inc. (NTNX) [11]

Operational Capacity and Performance - As of September 30, 2025, CleanSpark operates with a total contracted power capacity of approximately 1,027 megawatts (MW) across its data centers in Georgia, Tennessee, Mississippi, and Wyoming[26]. - The average computing power of operating mining units reached 45.6 exahash per second (EH/s), with a peak of 50 EH/s during the period[30]. - For the fiscal year ended September 30, 2025, CleanSpark mined approximately 7,873 bitcoins, a decrease of 11.0% compared to 7,092 bitcoins mined in fiscal year 2024, primarily due to the April 2024 bitcoin halving[34]. - CleanSpark owned approximately 336,544 miners, with 241,934 in service as of September 30, 2025, and an average operating energy efficiency of 16.7 watts per terahash (W/TH)[31]. - The company has executed long-term power supply agreements totaling 285 megawatts to support the development of a new data center campus in Austin County, Texas[38]. - CleanSpark's Georgia facilities support an operational hashrate of 27.02 EH/s backed by approximately 620 MW of data center infrastructure[44]. - The Mississippi facilities support an operational hashrate of 2.63 EH/s with a developed data center infrastructure of approximately 63 MW[45]. - The Tennessee facilities support an operational hashrate of 12.43 EH/s backed by 234 MW, including sites acquired through the acquisition of GRIID Infrastructure, Inc.[46]. Financial Management and Performance - The company has begun using a substantial portion of the bitcoin mined to fund operations and capital expenditures, integrating strategies for treasury management[33]. - The company has sustained $125,894 in cumulative net losses from inception through September 30, 2025, with a net income of $364,464 for the fiscal year ended September 30, 2025[117]. - The market price of bitcoin ranged from approximately $58,900 to $124,500 during the fiscal year ended September 30, 2025, indicating significant volatility[120]. - The company may require additional financing to sustain and expand operations, which may not be available on favorable terms, adversely affecting financial condition and results[109]. - The expansion into AI and HPC services is expected to increase capital intensity, potentially impacting liquidity and results of operations[112]. - The company maintains cash balances that often exceed federally insured limits, posing a risk of loss if banking institutions fail[114]. - The company produced bitcoin at a time when prices may be low, which could adversely affect investment value[157]. Regulatory and Compliance Risks - The company is monitoring evolving regulations that may impact its operations, particularly in the bitcoin mining and AI sectors[71]. - The company is exposed to regulatory risks, including potential changes in laws governing bitcoin mining and digital assets, which could increase compliance costs and impact operations[14]. - The company is subject to regulatory changes that may require registration as a money services business, potentially incurring substantial compliance costs[190]. - The CFTC may impose additional regulatory oversight on bitcoin transactions, potentially leading to extraordinary, non-recurring expenses for the company[195]. - Future SEC classification of bitcoin as a security could require significant compliance costs and registration, adversely affecting the company's financials[199]. - The company faces risks from potential future regulations in countries like China, India, and Russia, which could restrict cryptocurrency operations[201]. - Changes in environmental regulations could increase operational costs, impacting the company's profitability and expansion plans[202]. Market and Competitive Landscape - The company is subject to significant competition in the bitcoin mining and data center markets, with competitors having greater resources and capitalization, impacting its ability to acquire new miners and secure low-cost electricity[91]. - The company is focused on expanding into large-scale data centers for HPC and AI workloads, facing competition from established operators[62]. - The company faces potential liabilities from discontinued operations, which could adversely affect its financial results[179]. - The company’s ability to mine bitcoin profitably is threatened by rising power prices due to geopolitical events and inflation[161]. - The company must continue to grow its hashrate to remain competitive in the bitcoin mining industry, as the global network hashrate continues to increase[172]. Technological and Operational Risks - The company’s bitcoin mining operations are vulnerable to technological obsolescence and reliance on a global supply chain for hardware, which could increase costs and impact business[14]. - The company is exposed to risks related to technological obsolescence and supply chain disruptions, particularly concerning the import of mining equipment[183]. - The company’s operations are heavily dependent on third-party cloud service providers, and any failures could materially impact business operations and financial condition[153]. - Security threats, including hacking and malware, pose risks to the company's bitcoin holdings and could damage its reputation[146]. - The company may face challenges in liquidating or hedging bitcoin positions during periods of market stress, adversely affecting liquidity and financial condition[140]. Human Resources and Organizational Structure - The company has 314 staff members as of September 30, 2025, with 309 being full-time employees[76]. - The company’s future success is contingent on its ability to attract and retain skilled personnel in a competitive labor market, which may constrain growth and increase operational costs[105]. Strategic Initiatives and Future Outlook - The company is actively pursuing opportunities in AI and HPC hosting, leveraging its expertise in energy management and data center operations[36]. - The company has engaged in strategic acquisitions to expand its operations, including recent acquisitions in Georgia, Mississippi, Wyoming, Texas, and Tennessee, but these may dilute stockholder ownership and introduce integration challenges[100]. - The company launched a bitcoin treasury function in April 2025, exposing it to significant risks and uncertainties in trading activities[185]. - The company anticipates increased scrutiny and regulation surrounding AI and HPC hosting, which may affect its business operations[215].

Financial Highlights - Revenue for fiscal year 2025 reached $766.3 million[9], a significant increase compared to fiscal year 2024's $378.9 million[21] - GAAP Net Income for fiscal year 2025 was $364.5 million[9], a substantial turnaround from a loss of $145.8 million in fiscal year 2024[21] - Adjusted EBITDA for fiscal year 2025 was $823.4 million[9], a 107.5% increase from $245.8 million in fiscal year 2024[21] - Gross Profit for fiscal year 2025 was $423.2 million[21], with a gross profit margin of 55.2%[21] - The company mined 7,873 Bitcoin[9] with an operational hashrate of 50 EH/s as of October 31, 2025[9] Operational Metrics - The marginal cost per Bitcoin was $42,956[9], and the company held 13,011 Bitcoins[9], including receivables from collateral of 2,583[9] - The company has contracted capacity of 1,312 MW[13] across 33 operating data center sites[13] with an average fleet efficiency of 16.07 J/Th[13] - Q4 2025 revenue was $377.7 million[24], a 46.7% increase from Q3 2025's $257.4 million[24] Strategic Initiatives - The company is evolving from pure-play Bitcoin mining to an energy and infrastructure compute platform[10, 11, 16] - The company is expanding into the market for high-performing computing (HPC) and artificial intelligence (AI)[4] - The company closed a $1.15 billion convertible bond at 0% interest and has Bitcoin-collateralized facilities with $400 million capacity[30]