CleanSpark(US:CLSK)2025-08-07 21:30Financial Data and Key Metrics Changes - CleanSpark reported record-setting revenue of approximately $199 million for the third quarter, representing a 94% increase year-over-year and a 9% increase from the previous quarter [5][33] - Earnings per share reached $0.90, supported by gross margins of 54.6% [5][34] - The company produced 20.12 Bitcoin during the quarter, a 28% increase compared to the same quarter last year [33] - The total Bitcoin treasury grew to approximately $1.08 billion, an increase of over $100 million since the last quarter [6][39] - The marginal cost per Bitcoin was $44,806, reflecting a 5% increase over the previous quarter, primarily due to increased mining difficulty [36] Business Line Data and Key Metrics Changes - CleanSpark achieved an operational hash rate of 50 exahash, marking a significant milestone as the first publicly traded company to reach this level with American infrastructure [7][9] - The average power efficiency of the mining fleet improved to just over 16 joules per terahash [7] - The all-in cost per kilowatt hour decreased to $0.56, nearly $0 lower than in the second quarter [8][36] Market Data and Key Metrics Changes - The company holds approximately 5.6% of the global hash rate, an increase from 4.3% at the end of fiscal 2024 [15][16] - The average revenue recognized per Bitcoin produced was approximately $99,000, a 50% increase year-over-year [34] Company Strategy and Development Direction - CleanSpark aims to become the global leader in Bitcoin mining, focusing on operational excellence and capital stewardship [10][31] - The company is evaluating approximately 1.2 gigawatts of near-term power opportunities and an additional 1.7 gigawatts of long-term projects [21][22] - The strategy includes a balanced approach between monetizing new production and growing the Bitcoin treasury [47][48] Management's Comments on Operating Environment and Future Outlook - Management highlighted supportive macro and policy tailwinds, including recent regulatory developments that could drive increased demand for Bitcoin [23][24] - The company is optimistic about the future, expecting to capture a greater share of the global hash rate and continue its growth trajectory [14][15] Other Important Information - CleanSpark's total debt stands at approximately $820 million, with a significant portion related to a convertible transaction [39] - The company has onboarded several high-quality counterparties for its digital asset management team and completed its first derivative transaction [40][41] Q&A Session Summary Question: Can you elaborate on the 200 megawatts of additional contracted power available? - Management indicated that the 200 megawatts are in areas of existing operations and will focus on rolling out the next phase of infrastructure quickly [54][55] Question: What is the current M&A landscape and appetite for potential deals? - Management sees a robust pipeline in the private space and is ready to take advantage of opportunities as miners pivot to other areas [57][59] Question: When do you expect to reach targeted run rates for the digital asset management strategy? - Management expects a ramp-up in the coming quarters, with a measured approach to onboarding additional counterparties [62][64] Question: How are conversations with utility partners regarding the growth pipeline? - Management emphasized the flexibility of their operations, which positions them favorably in discussions with utilities [66][68] Question: What percentage of the Bitcoin treasury will be used for yield generation? - Management plans to use approximately 40% of the huddle balance to generate a target yield of 4% [72][73] Question: How does the company view the existing tariff environment regarding fleet expansion? - Management acknowledged the secondary market for hardware purchases as an option and noted the fluctuating tariff environment [108]