Group 1: Hong Kong Stocks - Lehua Entertainment (02306) surged over 24% due to strong market performance of its toy IP "WUKUKU," with multiple new products setting sales records and the theme song exceeding 1 billion views [1] - United Energy Group (00467) rose over 7% after signing a 15-year production increase contract with Uzbekistan's UNG, involving 57.8 billion cubic meters of oil and gas production, with an initial investment of $100 million to expand into Central Asia [1] - Smoore International (06969) fell over 3% as shareholder Yiwei Lithium Energy plans to reduce its stake by 3.5% (216 million shares), resulting in a decrease of its holding to 27.23%, no longer being the controlling shareholder [1] - New World Development (00200) dropped over 5% after completing a "2 for 1" rights issue, issuing 758 million shares and raising HKD 771 million, with oversubscription of 13 times [1] - Fourth Paradigm (06682) increased over 7% after launching AI solutions for the manufacturing industry, covering production optimization to supply chain intelligence upgrades [1] - Shandong High-Tech Holdings (00412) rose over 4% as Zhongtai Securities highlighted significant synergy between its new energy and digital infrastructure, with a data center PUE value of 1.15, enhancing financial integration [1] - KANAT Optical (02276) increased over 4% due to an explosion in the smart glasses market (e-commerce transactions up 8 times), with Meta collaborating with Oakley to launch AI glasses, positioning the company with leading 3C enterprises [1] Group 2: Other Notable Stocks - Sipai Health (00314) rose over 7% after partnering with Anruijiaer to develop customized insurance, planning to sell 6 pharmacies for 5.89 million to focus on core medical insurance business [2] - SF Express (09699) increased over 5% after raising its delivery service revenue cap for 2025/26 to HKD 12.8 billion / HKD 20.5 billion, with demand growth exceeding expectations [2] - Liufu Group (00590) fell over 3% as it projected a 40% decline in profits for the 2025 fiscal year, primarily due to gold hedging losses and high base effects from acquisition gains [2] - Zhenjiu Lidu (06979) rose over 4% after announcing Yao Annan as the "Cultural Heritage Ambassador" for liquor, leveraging Huawei-related topics to boost brand visibility [2] - Ideal Auto-W (02015) dropped over 4% as Meituan's Wang Xing sold 5.73 million shares for HKD 600 million, reducing his stake to 20.61% [2] - Health Road (02587) surged over 7% as its liver disease AI management platform was selected for Beijing's digital medical verification program, supporting WHO's "2030 Hepatitis Elimination" goal [2] - Gilead Sciences-B (01672) rose over 5% after its psoriasis oral drug ASC50 completed the first dosing in Phase I clinical trials in the U.S., targeting the IL-17 pathway [2] - China Silver Group (00815) increased over 10% after partnering with Zefeng Gold to acquire a 55% stake in a lead-zinc exploration company, gaining exploration rights over 50.8 square kilometers in Tibet [2] Group 3: U.S. Stocks - Verve Therapeutics (VERV.US) skyrocketed over 80% as Eli Lilly prepares to acquire the gene-editing company for up to $1.3 billion, with $1 billion as an upfront payment and $300 million contingent on specific clinical milestones [4] - Solar energy stocks plummeted, with Sunrun (RUN.US) down over 40%, Solaredge Technologies (SEDG.US) down over 41%, and First Solar (FSLR.US) down over 22%, following a Republican proposal in the U.S. Senate to terminate wind and solar tax credits by 2028, raising concerns about the industry's outlook [4] - Reddit (RDDT.US) rose over 6% after launching the AI advertising tool Reddit Insights, enhancing ad targeting through real-time user trend analysis [4] - Bitcoin-related stocks fell, with CleanSpark (CLSK.US) down over 7% and Riot Platforms (RIOT.US) down over 5%, as Bitcoin prices dropped nearly 2% to $105,580 amid escalating tensions in the Middle East and high leverage positions in the derivatives market [4] - AMD (AMD.US) continued to rise 0.56% after officially launching the Zen5 architecture Ryzen Threadripper processors, covering the workstation and desktop markets, with a market share close to 50% in China for Q1, although there are concerns about its cost-performance ratio [5] - Brain Regen Technologies (RGC.US) surged over 30% after announcing a 38-for-1 stock split, coupled with FDA clinical trial approval news, although its actual business has no revenue and a very small float, indicating significant retail speculation [6] - Jabil (JBL.US) rose over 8%, reaching a new all-time high of $202.5, with Q3 revenue increasing 15% year-on-year to $7.83 billion, raising its full-year revenue forecast to $29 billion and planning a $500 million investment to support AI data center infrastructure [6] - Niu Technologies (NIU.US) increased over 11% after launching its new NX Play electric motorcycle on Douyin, integrating a smart riding system to enhance user experience [6] - T-Mobile US (TMUS.US) fell nearly 4% as SoftBank sold 21.5 million shares at $224 each, a 3% discount, triggering market sell-off [6] - The pharmaceutical sector saw widespread declines, with Eli Lilly (LLY.US) down over 2% and Novo Nordisk (NVO.US) down over 3%, as concerns grew over the potential impact of the U.S. Senate tax bill on the industry, coupled with profit-taking ahead of some companies' earnings reports [6] - The gold sector declined, with Gold Fields (GFI.US) down over 2.1%, and spot gold fell 0.27% to $3,375.53, as easing tensions in the Middle East reduced safe-haven demand, alongside Citigroup's bearish long-term gold price forecast [7]

Core Viewpoint - CleanSpark (NASDAQ: CLSK) has experienced a significant increase in its stock price over the past few months, particularly since the lows in April, indicating positive market sentiment towards the company [1]. Company Focus - CleanSpark has primarily focused on bitcoin mining since 2020, branding itself as "America's Bitcoin Miner" [1]. Stock Performance - The appreciation in CleanSpark's stock price suggests a recovery and potential growth trajectory for the company in the bitcoin mining sector [1].

Core Insights - CleanSpark, Inc. is advancing towards a hashrate milestone of 50 EH/s with fully self-operated infrastructure, reflecting its commitment to operational control and scalability [2][3] - The company has doubled its Bitcoin treasury year-over-year to 12,502 BTC, all acquired through mining operations without issuing equity since November 2024, emphasizing disciplined capital management [2][5] - CleanSpark has expanded its contracted power capacity to 987 MW, which supports its growth strategy and operational performance [2][5] Operational Performance - In May 2025, CleanSpark maintained an average hashrate of 42.5 EH/s and achieved a month-end hashrate of 45.6 EH/s, representing a 7.5% increase sequentially [2][5] - The company produced an average of 22.39 BTC daily, with a peak single-day output of 23.50 BTC, and sold a total of 293.5 BTC at an average price of approximately $102,254 per BTC [5] - The average fleet efficiency was reported at 16.71 J/Th, indicating effective energy utilization in mining operations [7] Strategic Positioning - CleanSpark is recognized as the sixth-largest public Bitcoin holder, all mined directly through its operations, validating its infrastructure-first strategy [3] - The company aims to achieve over 60 EH/s in the future, indicating a focus on long-term growth and shareholder value [3] - CleanSpark's participation in Bitcoin 2025 highlighted its leadership in discussions on mining, energy, and digital asset management [3]

Group 1: Company Performance - NetEase-S (09999) saw a significant increase of 10.89% in stock price after reporting Q1 2025 net revenue of RMB 28.8285 billion, a year-on-year increase of 7.4%, and gross profit of RMB 18.5 billion, up 8.6% [1] - H&H International Holdings (01112) rose over 8% as the market speculated on the ergotamine concept, with its Swisse brand showing strong performance in high-growth segments [2] - China Gold International (02099) experienced a stock price increase of over 5% after reporting a 351% rise in Q1 revenue to USD 273 million [2] Group 2: Clinical and Pharmaceutical Developments - Shandong Xinhua Pharmaceutical (00719) surged over 14% as COVID-19 infections showed an upward trend, with the company preparing for Phase II clinical trials of OAB-14 [1] - Innovent Biologics (01801) rose nearly 3% after announcing the completion of the first patient dosing in the Phase III clinical study of Ma Shidu peptide for obesity [1] - Kangxi Biologics (06185) increased over 3% after receiving approval from the Indonesian drug regulatory authority for its inhaled tuberculosis vaccine clinical trial [1] Group 3: Market Trends and Reactions - The Nasdaq Golden Dragon China Index fell over 2%, with notable declines in popular Chinese stocks such as Tiger Brokers (TIGR.US) down over 8% and Beike (BEKE.US) down over 5% [3] - UnitedHealth Group (UNH.US) experienced a significant drop of over 15% following reports of a U.S. Department of Justice investigation into potential insurance fraud [3] - Bitcoin-related stocks declined, with CleanSpark (CLSK.US) down nearly 6% and Coinbase (COIN.US) down over 7%, as Bitcoin itself fell over 1.5% [3]

Company Overview - CleanSpark Inc. is a Bitcoin mining firm with operations in the Southeastern and Southwestern United States, distinguished by its background as an energy resource and clean microgrid energy company before entering the cryptocurrency space [1] Stock Performance - CleanSpark's current stock price is $9.19, reflecting a 5.88% increase, with a 52-week range between $6.45 and $20.64 [2] - The company has received seven Buy ratings from analysts, despite a 15% decline in shares so far in 2025, with a consensus price target of $21.57, indicating potential for significant upside [2][10] Mining Operations - CleanSpark has focused primarily on Bitcoin mining, avoiding diversification into high-performance computing (HPC) or AI, which has contributed to a modest year-to-date decline compared to competitors like MARA Holdings Inc., which has seen a 23% drop [4] - The company's cost to mine a Bitcoin in Q4 2024 was approximately $34,000, lower than many competitors [5] - In April 2025, CleanSpark achieved an average hash rate of over 40 EH/s and mined 633 Bitcoin, bringing its total holdings to over 12,000 Bitcoin by the end of the month [7][8] Financial Stability - CleanSpark's financial standing provides stability amid Bitcoin price fluctuations, with low mining costs enhancing its gross margin [9] - The company sold over 401 Bitcoin in April at an average price above $90,000, demonstrating effective market discipline [10] - CleanSpark secured a $200 million revolving credit facility with Coinbase Global Inc., aiding in liquidity and operational expense management [11] Market Position - CleanSpark's Bitcoin reserves are valued at approximately $1.2 billion, with a total market capitalization of $2.3 billion, although its price-to-sales ratio of 4.86 is less attractive compared to competitors like Hut 8 Corp. [12] - The company's operational efficiency and strategic handling of Bitcoin reserves contribute to positive analyst sentiment [13]

Company Overview - CleanSpark is identified as "America's Bitcoin miner" and is focused on the Bitcoin mining industry [3]. Financial Results - The conference call discusses the financial results for the second quarter of fiscal year 2025, covering the three and six months ended March 31, 2025 [3]. - A press release detailing these results was issued shortly before the call and is available on the company's website [3]. Leadership Participation - The call features key company executives including Zach Bradford (CEO) and Gary Vecchiarelli (CFO) [4]. Forward-Looking Statements - The company acknowledges that some statements made during the call are forward-looking and based on current views of the business environment [4]. Financial Measures - The discussion includes non-GAAP financial measures related to the company's performance, with reconciliations available in the press release [5].

Company Performance - CleanSpark reported a quarterly loss of $0.02 per share, which was better than the Zacks Consensus Estimate of a loss of $0.03, but a decline from earnings of $0.13 per share a year ago, representing an earnings surprise of -166.67% [1] - The company posted revenues of $181.71 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.58%, and showing an increase from year-ago revenues of $111.8 million [2] - Over the last four quarters, CleanSpark has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - CleanSpark shares have declined approximately 12.8% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $219.54 million, and for the current fiscal year, it is $0.99 on revenues of $817.49 million [7] Industry Outlook - The Zacks Industry Rank for Financial - Miscellaneous Services, to which CleanSpark belongs, is currently in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CleanSpark's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $181.7 million, an increase of 62.5% year-over-year and 12% quarter-over-quarter [28][5][30] - Gross profit reached nearly $100 million, up 24% year-over-year with a gross margin of 53% [5][30] - The company reported a net loss of $138.8 million, primarily due to a decline in Bitcoin spot prices [30][14] - Adjusted EBITDA was negative $57.8 million, but operations produced approximately $70 million of positive EBITDA when normalized [30][12] - The average revenue per Bitcoin was $92,811, a 69% increase year-over-year [29][30] Business Line Data and Key Metrics Changes - Bitcoin production for the quarter was 19.57 Bitcoin, a slight decrease of 3.6% year-over-year despite a halving event [28][30] - The marginal cost per coin rose to approximately $42,600, a 26% increase over the previous quarter [31][30] - Cash overhead decreased by 16% quarter-over-quarter [12] Market Data and Key Metrics Changes - Bitcoin traded at approximately $81,000 at quarter-end, down from $93,000 at the beginning of the year [14] - The mining difficulty increased by 3.6% during the quarter [14] Company Strategy and Development Direction - The company is focused on maintaining and growing its market share, currently at about 5% [47] - CleanSpark is committed to a balanced approach between treasury growth and strategic monetization of Bitcoin [11][36] - The company plans to continue expanding its operations, targeting over 50 exahash by mid-2025 [12][20] - CleanSpark aims to avoid equity dilution and instead utilize non-dilutive funding options [10][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience amid challenges such as rising energy prices and declining Bitcoin prices [14][26] - The company is well-positioned to capitalize on market opportunities, particularly in acquiring smaller miners at attractive valuations [18][76] - Management emphasized a disciplined approach to capital management and operational efficiency [11][26] Other Important Information - CleanSpark was ranked 35th in the Financial Times 2025 list of the 500 fastest-growing companies in the Americas [22] - Institutional ownership in the company's stock increased to nearly 64% following its inclusion in the S&P SmallCap 600 Index [22] Q&A Session Summary Question: Outlook for network cash rate growth in 2025 and CleanSpark's market share - Management noted a plateau effect in network growth but expressed confidence in maintaining and growing market share [46][47] Question: How the digital asset management team will generate shareholder value - Management discussed selecting the right counterparties and strategies to generate cash flow and flexibility [48][49] Question: Impact of competitors pivoting to HPC on rig pricing - Management indicated that reduced demand from competitors has created opportunities for acquiring rigs at lower costs [56][58] Question: Coverage of CapEx through Bitcoin sales - Management confirmed that excess cash from Bitcoin sales could cover CapEx and operational expenses [61][62] Question: Consideration of using Bitcoin holdings to repurchase shares - Management stated that while they consider all options, the focus remains on growing the Bitcoin balance and enhancing shareholder value [67][70] Question: Future of Bitcoin-backed facilities and M&A opportunities - Management expressed openness to bolt-on acquisitions, especially if valuations are advantageous [75][76]

Financial Data and Key Metrics Changes - Revenue for Q2 increased to $181.7 million, a 62.5% increase year-over-year and a 12% increase quarter-over-quarter [25][26] - Gross profit reached nearly $100 million, up 5% sequentially and more than 24% year-over-year, with a gross margin of 53% [4][26] - The company reported a net loss of $138.8 million, primarily due to a decline in Bitcoin spot prices [27][12] - Adjusted EBITDA was a negative $57.8 million, but operations produced approximately $70 million of positive EBITDA when normalized [27][28] - The marginal cost per Bitcoin rose to approximately $42,600, a 26% increase over the previous quarter [28] Business Line Data and Key Metrics Changes - Bitcoin production for the quarter was 19.57 Bitcoin, a slight decrease of 3.6% year-over-year despite a halving event [25][26] - Average revenue per Bitcoin produced was $92,811, an increase of 69% year-over-year [26] - Cash overhead decreased by 16% quarter-over-quarter [10] Market Data and Key Metrics Changes - Bitcoin traded at approximately $81,000 at quarter-end, down from $93,000 at the start of the year [12] - The company’s Bitcoin treasury now exceeds 12,101 Bitcoin, valued at over $1.2 billion at current prices [31][11] Company Strategy and Development Direction - The company is transitioning from a nearly 100% HODL strategy to using a portion of monthly Bitcoin production to support operations [8][31] - CleanSpark aims to reach 50 exahash by mid-2025 and has plans for further expansion beyond that [10][19] - The company is focused on maintaining a strong balance sheet and avoiding equity dilution, contrasting with peers who rely on such methods [8][32] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience amid rising energy prices, declining Bitcoin prices, and increasing mining difficulty [12][21] - The company is well-positioned to capitalize on market opportunities, particularly in acquiring smaller miners at attractive valuations due to tariff pressures [15][69] - Management emphasized a disciplined approach to capital management and strategic flexibility in a volatile market environment [19][32] Other Important Information - CleanSpark was ranked number 35 in the Financial Times 2025 list of the 500 fastest-growing companies in the Americas [20] - Institutional ownership in the company increased to nearly 64% following its inclusion in the S&P SmallCap 600 Index [20] Q&A Session Summary Question: Outlook for network cash rate growth in 2025 and CleanSpark's market share - Management noted a plateau effect in network growth but believes CleanSpark is well-positioned to maintain and grow its market share, currently at about 5% [42][43] Question: How the digital asset management team will generate shareholder value - The team is focused on selecting the right partners and utilizing strategies like covered calls to generate cash flow and maintain flexibility [44][45] Question: Impact of competitors pivoting to HPC on mining rig pricing - Management indicated that reduced demand from larger players has created opportunities for CleanSpark to acquire rigs at lower costs, with expectations of continued price decreases [51][54] Question: Coverage of CapEx through Bitcoin sales - Management clarified that monthly operational expenses are around $35 million, and excess revenue from Bitcoin sales can be allocated towards CapEx or debt servicing [55][58] Question: Consideration of using Bitcoin holdings to repurchase shares - Management is open to various capital strategies but prioritizes growing the Bitcoin balance and enhancing shareholder value through operational investments [62][65] Question: Future of Bitcoin-backed facilities and market for acquisitions - Management expressed interest in bolt-on acquisitions, especially if valuations are favorable, and noted that they are always open to opportunities in the market [68][69]

Financial Performance - CleanSpark reported a significant increase in revenue, reaching $50 million for the quarter, representing a 25% year-over-year growth[8] - The company reported a net income of $5 million, compared to a net loss of $2 million in the same quarter last year, marking a significant turnaround[8] - CleanSpark anticipates a further increase in revenue by 15% in the next quarter, projecting $57.5 million based on current market trends[14] Operational Efficiency - The company achieved a hash rate capacity of 3.5 EH/s, up from 2.8 EH/s in the previous quarter, indicating a 25% increase in mining efficiency[12] - CleanSpark's operational costs decreased by 10% due to improved energy efficiency measures implemented in its mining facilities[12] - The company is investing $10 million in new mining equipment to enhance operational capacity and efficiency[14] Strategic Expansion - CleanSpark plans to expand its market presence by entering two new states for mining operations by the end of the fiscal year[14] - The company is exploring potential acquisition opportunities to further enhance its market position and operational capabilities[14] Risk Management - CleanSpark is focusing on developing an in-house bitcoin treasury function to manage its bitcoin holdings and mitigate risks associated with market volatility[22] - The company has identified and is addressing material weaknesses in its internal controls over financial reporting, aiming for full remediation by the end of the fiscal year[14]