CleanSpark(US:CLSK)2023-02-08 16:00Bitcoin Holdings and Transactions - Bitcoin holdings decreased from $11,147 thousand as of September 30, 2022, to $3,863 thousand as of December 31, 2022, due to sales and impairments[78] - The company sold 34,067 thousand worth of bitcoin during the three months ended December 31, 2022, resulting in a realized loss of $517 thousand[78] - The company added 27,746 thousand worth of bitcoin during the same period[78] - The company held approximately 234 bitcoins as of December 31, 2022, with a carrying value of $3,863 on the Consolidated Balance Sheet[106] Financial Performance - The company reported a loss from continuing operations of $30,488 thousand for the three months ended December 31, 2022, compared to income of $15,644 thousand in the same period of 2021[90] - Basic loss per share from continuing operations was $0.46 for the three months ended December 31, 2022, compared to earnings of $0.38 per share in the same period of 2021[90] - Bitcoin mining revenue for Q4 2022 was $27.7 million, a 25% decrease compared to $37.0 million in Q4 2021, driven by a significant drop in average bitcoin price from $55,903 to $18,130[115] Bitcoin Mining Operations - Bitcoin mining has become the company's principal revenue-generating business activity, with no intention to mine other cryptocurrencies at this time[98] - The company's operating mining units are capable of producing over 6.2 exahash per second (EH/s) as of December 31, 2022, and increased to 6.6 EH/s by February 9, 2023[100] - The company mined 1,530 bitcoins in Q4 2022, up from 661 bitcoins in Q4 2021, due to an increase in operational miners from 18,800 to 63,700[115] - The company's hashrate accounted for 2.3% of the global hashrate as of December 31, 2022, up from 1.0% in the same period in 2021[111] - The company's mining fleet efficiency improved to 31.7 watts per terahash (w/th) in Q4 2022, compared to 35.3 w/th in Q4 2021[111] - The company plans to continue expanding its bitcoin mining operations through acquisitions, infrastructure development, and strategic co-location agreements[100] Energy and Cost Management - Energy costs represented 70% of bitcoin mining revenue for wholly-owned locations in Q4 2022, up from 8% in Q4 2021, driven by higher power prices[112] - The company curtailed 15% of its mining fleet in Q4 2022 due to nationwide energy price spikes, reducing production to avoid excessive costs[114] - Voluntary curtailment of bitcoin mining operations during December 2022 due to extreme weather conditions and significantly higher energy prices in Georgia and New York[119] - Resumption of mining operations after energy prices dropped back to consistent rates post-extreme weather event[119] - Continuous evaluation of energy and bitcoin prices to determine advantageous periods for curtailing mining operations[119] - Increased utilities and hosting fees due to higher volume of mining equipment installed and rising cost per megawatt utilized[119] Sustainability and Clean Energy - The company is developing a long-term sustainability and clean energy plan for its bitcoin mining operations, utilizing clean and renewable energy resources[97] Financial Instruments and Cash Balances - The fair value of financial instruments measured at Level 1 was $4,840 thousand as of December 31, 2022, while Level 3 instruments were valued at $2,324 thousand[83] - Cash balances in excess of FDIC limits were $1,811 thousand as of December 31, 2022, down from $20,213 thousand as of September 30, 2022[85] Share Information - Common stock outstanding as of February 9, 2023: 77,992,916 shares[123]