Key Takeaways CleanSpark expands into AI and HPC with a 1.3-GW portfolio plus new Texas and Georgia development sites.CLSK sees AI data centers providing stable, high-margin revenues alongside its 2025-2028 expansion roadmap.MARA and Cipher intensify AI and HPC competition as both scale infrastructure and long-term contracts.CleanSpark, Inc. (CLSK) is redefining its identity, moving beyond Bitcoin mining toward a diversified digital infrastructure model. Management has made 2025 a key time for entry into AI ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter reached $225 million, reflecting a 60.6% sequential increase [2][8] - Operating income was $43.5 million, and net income was $37.3 million, a significant improvement from an operating loss of $1.2 million and a net loss of $9.5 million in the same period last year [9] - Adjusted EBITDA for the third quarter was $80.1 million, compared to $1.2 million in the same period last year [9] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business was $220.9 million, with 1,930.8 Bitcoins mined, representing a 50.9% and 37.5% increase respectively on a sequential basis [8] - The used car export platform, AutoCango, generated revenue of $3.3 million, up 90% sequentially [7] Market Data and Key Metrics Changes - The company operates a deployed hash rate of 50 exahash globally, with an average operating hash rate increasing from 40.91 exahash in July to 46.09 exahash in October [3] - The average cost to mine Bitcoins was $81,072 per coin, with oil costs at $99,383 per coin [8] Company Strategy and Development Direction - The company aims to build a global distributed AI compute network powered by green energy, using Bitcoin mining as a stepping stone towards energy and compute ambitions [4][5] - The strategy includes a focus on hash rate optimization over expansion, refreshing older mining models to improve efficiency [3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile market environment with significant fluctuations in Bitcoin prices and emphasized a flexible approach to manage market risks [4] - The company is committed to enhancing operational efficiency and maintaining a strong balance sheet through strategic debt management [18] Other Important Information - The company has transitioned to a direct listing on the NYSE to enhance transparency and reduce shareholder transaction costs [6] - Clean energy projects in Oman and Indonesia are underway, expected to support future AI infrastructure development [5] Q&A Session Summary Question: Will the company consider selling Bitcoin holdings to fund new business expansion? - Management confirmed a mining holding strategy, retaining all mined Bitcoin as part of a strategic reserve, while remaining flexible in financing options [13] Question: What are the main factors behind the gap between operational hash rate and deployed hash rate? - Management explained that temporary downtime during integration and external factors like extreme weather affected uptime, but operational efficiency has stabilized above 90% [14] Question: Can you elaborate on the financial benefits of converting short-term debt into long-term debt? - The shift enhances balance sheet stability and aligns with the strategy of building Bitcoin reserves through self-mining, with borrowing costs expected to remain stable at 7%-8% [18] Question: How does the company view the risk of AI CapEx entering bubble territory? - Management believes that while the market is reassessing AI investments, long-term compute demand remains strong, and the company will monitor investments closely to optimize capital efficiency [19] Question: How does the recent pullback in Bitcoin affect operating pace for Q4 and 2026? - Management conducts internal stress tests and can adjust operations dynamically under extreme market conditions, maintaining flexibility in BTC holding strategy [22][23] Question: Does owning the Joder site contradict the asset-light model? - Management clarified that the acquisition aligns with long-term needs for low-cost power and infrastructure capabilities, with a balanced approach of leasing and selective acquisitions for future expansion [24]

Financial Data and Key Metrics Changes - Total revenue for the third quarter reached $225 million, representing a sequential increase of 60.6% [2][8] - Operating income was $43.5 million, and net income was $37.3 million, a significant improvement from an operating loss of $1.2 million and a net loss of $9.5 million in the same period last year [9] - Adjusted EBITDA for the third quarter was $80.1 million, compared to $1.2 million in the same period last year [9] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business was $220.9 million, with 1,930.8 Bitcoins mined, reflecting increases of 50.9% and 37.5% respectively on a sequential basis [8] - The used car export platform, AutoCango, generated revenue of $3.3 million, up 90% sequentially [7] Market Data and Key Metrics Changes - The company operates a deployed hash rate of 50 exahash globally, with an average operating hash rate improving from 40.91 exahash in July to 46.09 exahash in October [3] - The average cost to mine Bitcoins was $81,072 per coin, with oil costs at $99,383 per coin [8] Company Strategy and Development Direction - The company aims to build a global distributed AI compute network powered by green energy, using Bitcoin mining as a stepping stone towards energy and compute ambitions [4] - The strategy emphasizes hash rate optimization over expansion, with a focus on refreshing older mining models to improve efficiency [3] - The company is pursuing a balanced model of leasing and selective strategic acquisitions to maintain cost advantages and support its transition [24][25] Management's Comments on Operating Environment and Future Outlook - The current market environment is volatile, with significant fluctuations in Bitcoin prices, but the company is closely monitoring these dynamics [4] - Management believes the fundamental thesis for Bitcoin as a core reserve asset remains intact despite market volatility [13] - The company is taking a differentiated approach in AI compute, focusing on flexible distributed compute units rather than large centralized data centers [5][28] Other Important Information - The company has assembled a new leadership team with experience in digital infrastructure and finance, and transitioned to a direct listing on the NYSE to enhance transparency [6] - Clean energy projects in Oman and Indonesia are underway and expected to be commissioned within the next one to two years [5] Q&A Session Summary Question: Will the company consider selling Bitcoin holdings to fund new business expansion or manage market risk? - The company continues to follow a mining holding strategy, retaining all mined Bitcoin as part of its strategic reserve, while being flexible across financing channels to support new initiatives [13] Question: What are the main factors behind the gap between operational hash rate and deployed hash rate? - Temporary downtime during the integration phase and external factors like extreme weather affected miner availability, but uptime has stabilized above 90% [14] Question: Can you elaborate on the financial benefits of converting short-term debt into long-term debt? - This shift enhances balance sheet stability and reduces financial risk, with borrowing costs expected to remain in the 7%-8% range [18] Question: How does the company view the risk of AI CapEx entering bubble territory? - The company is monitoring AI project investments and adjusting strategies to optimize capital efficiency while avoiding high leverage [19] Question: How does the recent pullback in Bitcoin affect operating pace for Q4 and 2026? - The company conducts internal stress tests and can dynamically adjust operations under extreme scenarios to control expenses [22][23] Question: Does the self-owned Joder site contradict the asset-light model? - The acquisition aligns with long-term needs for low-cost power and stability, and the company will continue to prioritize leasing for rapid expansion [24]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $225 million, representing a 60.6% increase sequentially [2][8] - Operating income was $43.5 million, and net income was $37.3 million, compared to an operating loss of $1.2 million and a net loss of $9.5 million in the same period last year [9][10] - Adjusted EBITDA for Q3 2025 was $80.1 million, up from $1.2 million in the same period last year [9] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business was $220.9 million, with 1,930.8 Bitcoins mined, reflecting increases of 50.9% and 37.5% respectively on a sequential basis [8] - Revenue from the automotive training business, AutoCango, was $3.3 million, up 90% sequentially [6] Market Data and Key Metrics Changes - The company operates a deployed hash rate of 50 exahash globally, with an average operating hash rate improving from 40.91 exahash in July to 46.09 exahash in October [3][4] - The average cost to mine Bitcoins was $81,072 per coin, with oil costs at $99,383 per coin [8] Company Strategy and Development Direction - The company is focused on building a global distributed AI compute network powered by green energy, using Bitcoin mining as a practical on-ramp towards energy and compute ambitions [4][5] - The strategy prioritizes hash rate optimization over expansion, with upgrades to more energy-efficient mining models [3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile market environment with significant fluctuations in Bitcoin prices and emphasized the importance of monitoring these dynamics [4] - The company plans to maintain a flexible approach across various financing channels to support new initiatives while retaining all mined Bitcoin as part of its strategic reserve [13] Other Important Information - The company has transitioned to a direct listing on the NYSE to enhance transparency and reduce shareholder transaction costs [5] - A new leadership team with experience in digital infrastructure and finance has been assembled [5] Q&A Session Summary Question: Will the company consider selling Bitcoin holdings to fund new business expansion? - Management confirmed that they will continue to follow a mining holding strategy, retaining all mined Bitcoin as part of their strategic reserve [13] Question: What are the main factors behind the gap between operational hash rate and deployed hash rate? - Management explained that temporary downtime was due to machine relocations and power system commissioning, but uptime has stabilized above 90% [14] Question: Can you elaborate on the financial benefits of converting short-term debt into long-term debt? - Management stated that this shift enhances balance sheet stability and reduces financial risk, with borrowing costs expected to remain in the 7%-8% range [18] Question: How does the recent pullback in Bitcoin affect operating pace for Q4 and 2026? - Management indicated that they conduct internal stress tests and can adjust operations dynamically under extreme market conditions [22] Question: Does the acquisition of the Joder site contradict the asset-light model? - Management clarified that the acquisition aligns with long-term needs for low-cost power and stability, and they will continue a balanced model of lease-first with selective acquisitions [23]

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]

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Core Insights - The partnership between AMD and OpenAI marks a significant milestone for both companies and the AI industry, emphasizing the growing demand for AI compute power [1][2][3] - AMD plans to build out six gigawatts of AI compute capacity, starting with one gigawatt in the second half of 2026, utilizing their next-generation MI450 chip [8][33] - The AI compute market is experiencing explosive growth, with OpenAI reporting 800 million weekly active users of its products, highlighting the urgent need for increased computational resources [5][39] Company Developments - AMD has committed to a massive buildout of AI compute infrastructure, which is expected to benefit shareholders and enhance the overall AI ecosystem [3][21] - The partnership with OpenAI is described as an "all-in" commitment, indicating a long-term collaboration focused on meeting the computational needs of AI applications [9][20] - AMD's revenue is anticipated to increase as OpenAI purchases chips, creating a mutually beneficial relationship [20][21] Industry Trends - The demand for AI compute is projected to continue growing, with estimates suggesting the AI accelerator total addressable market (TAM) could exceed $500 billion in the coming years [39] - The industry is facing a "compute desert," where the supply of computational power is insufficient to meet the rising demand, prompting a need for rapid infrastructure development [6][36] - Collaboration among various cloud providers and energy sources, including nuclear power, is essential to support the growing computational needs of the AI sector [11][12][24] Technological Insights - The MI450 chip is highlighted as a key component in AMD's strategy to enhance AI inference capabilities, with expectations of significant performance improvements [27][31] - The partnership aims to diversify the computational resources available for AI workloads, allowing for a broader range of applications and improved efficiency [28][31] - The focus on building a robust supply chain, primarily in the U.S., is seen as critical for maintaining leadership in AI technology and ensuring timely delivery of computational power [23][25][26]

Core Viewpoint - Nebius has transformed from a seemingly peripheral player in the tech industry to a significant contender, achieving a 350% increase in stock price and a market capitalization exceeding $21 billion within a year, driven by strong revenue growth projections and a landmark agreement with Microsoft [2][3]. Company Overview - Nebius, an AI-centric cloud company, emerged from a split with Yandex and is categorized as a "Neocloud," focusing exclusively on AI workloads with optimized infrastructure [4]. - The company has secured a $17.4 billion agreement with Microsoft to provide GPU infrastructure over five years, validating its capabilities and positioning it among major tech players [3][5]. Market Position and Strategy - Nebius differentiates itself from general-purpose clouds like AWS and Azure by concentrating on high-performance, dedicated GPU infrastructure tailored for AI labs and organizations [4]. - The partnership with Nvidia, a leader in AI chips, provides Nebius with preferential access to advanced GPUs, enhancing its competitive edge [7]. - Nebius employs a vertically integrated model, designing its own servers to reduce costs and improve performance, which allows for rapid deployment and efficiency [8]. Growth Potential - The AI cloud market is expected to grow significantly, with Nebius projected to increase revenues from $568 million in 2025 to approximately $1.5 billion in 2026, and potentially reaching $7.6 billion by 2030 if it maintains a 50% annual growth rate [10]. - The Microsoft contract could contribute over $3.5 billion annually by 2028, indicating strong revenue potential [10]. Valuation Insights - Currently trading at about 40 times the estimated revenue for 2025, if this multiple contracts to 15 times sales, Nebius could achieve a market cap of $114 billion, translating to a stock price of around $459 per share by 2030, representing over 5 times the current price [11].

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of $44 million, down 10% from $49 million in Q1 2025, attributed to rising network cash rates and summer power prices in Texas [33][34] - The GAAP net loss for the quarter was $46 million, or $0.12 per share, compared to a net loss of $15 million, or $0.05 per share in Q2 2024 [34][35] - Adjusted earnings for Q2 2025 were $30 million, or $0.08 per share, up approximately 400% from $6 million in the previous quarter [34][36] - The company’s cash position increased from $23 million in March to $63 million in June, reflecting the remaining proceeds from a convertible offering and opportunistic Bitcoin sales [42] Business Line Data and Key Metrics Changes - The company mined a total of 4.44 Bitcoin in Q2 2025, with 4.34 Bitcoin from Odessa and 10 Bitcoin from Black Pearl, generating revenue at an average price of approximately $99,700 per Bitcoin [37] - Black Pearl Phase 1 contributed about 2% of quarterly revenue, with expectations for significant growth in future quarters as production ramps up [24][37] Market Data and Key Metrics Changes - The average all-in electricity cost per Bitcoin produced at Odessa was approximately $24,686, while the combined all-in electricity cost for joint venture sites was roughly $44,594 [22][24] - The company’s projected all-in weighted average power cost remains competitive at $0.31 per kilowatt hour [8] Company Strategy and Development Direction - The company is focused on strategically evaluating funding options to support growth while minimizing dilution, having raised approximately $168 million in net proceeds from a convertible offering [12] - Black Pearl Phase 2 is being developed to support both hydro Bitcoin mining and HPC compute applications, with a flexible design to accommodate future tenant demands [15][19] - The company aims to capitalize on the growing demand for power and tightening supply in the HPC market, with ongoing discussions to secure advantageous deals [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of Barber Lake and the potential for Black Pearl Phase 2, highlighting the increasing energy demands of advanced AI systems [14][18] - The company anticipates that the demand for energy will continue to grow, positioning itself to support tenants as the HPC market scales [19][21] Other Important Information - The company successfully paid off all short-term borrowings, reducing its liabilities significantly from $139 million in Q1 to $53 million in Q2 [46][48] - The company’s operating capacity currently stands at 477 MW, with potential pipeline capacity expansion of up to 2.6 GW in the coming years [10] Q&A Session Summary Question: Can you quantify the time to convert from hydro Bitcoin mining to AI HPC compute? - The company expects to have the full 150 megawatts ready by the back half of next year, with the ability to accommodate fast requests for HPC [51][53] Question: What would trigger hyperscalers to choose an operator in your peer set? - There has been increased interest from hyperscalers, particularly in July, with many reaching out for discussions [57][59] Question: What are the potential differences in costs affiliated with the hybrid model compared to a pure mining site? - The estimated cost for the hybrid model is about $1.5 million per megawatt, with additional costs depending on tenant requirements [63][65] Question: What sites are being actively marketed for HPC? - The primary focus is on Barber Lake, Black Pearl Phase 2, and Stingray, with ongoing discussions with potential tenants [87][89]