CleanSpark(CLSK)2025-05-08 21:32Financial Data and Key Metrics Changes - Revenue for Q2 2025 was 100 million, up 24% year-over-year with a gross margin of 53% [5][30] - The company reported a net loss of 57.8 million, but operations produced approximately 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 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]