CleanSpark(US:CLSK)2024-05-09 21:51Financial Data and Key Metrics Changes - The company reported revenue of $111.8 million for the second quarter, representing a 163% increase year-over-year and a 52% increase compared to the previous quarter [5][63] - Adjusted EBITDA for the second quarter was approximately $182 million, an improvement of 1.6 times over the preceding first quarter [13][63] - The company achieved a record net income of $126.7 million, or $0.59 earnings per share, compared to a net loss of $18.5 million, or a loss of $0.23 per share in the same quarter last year [8][63] Business Line Data and Key Metrics Changes - The total number of machines in operation increased from approximately 68,000 at the end of Q2 last year to about 134,000 at the end of Q2 this year, representing a significant increase in hashrate from 6.7 exahash to 16.7 exahash [6][8] - The average revenue per Bitcoin more than doubled year-over-year, increasing from approximately $23,000 to $55,000 [6][8] Market Data and Key Metrics Changes - The company noted that its mining economics remained healthy, with gross profit improving 21 points year-over-year and 8 points over the first quarter [7] - Wholesale power costs were as low as 1.3 cents per kilowatt hour, contributing to favorable all-in costs of 4.3 cents per kilowatt hour for wholly-owned locations [7] Company Strategy and Development Direction - The company is focused on growth through equity utilization, aiming to build long-term value and capitalize on the increasing adoption of Bitcoin [4] - The strategic approach emphasizes owning and operating facilities to maintain control over operations and costs, particularly in light of the recent Bitcoin halving [10][19] - The company plans to reach 50 exahash per second by 2025, with a target of 32 exahash per second coming online by the end of this year [45] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of operational efficiency and strategic positioning in navigating the challenges posed by the Bitcoin halving and market fluctuations [30][42] - The company anticipates significant consolidation in the Bitcoin mining industry, which will create opportunities for well-positioned miners like CleanSpark [42] Other Important Information - The company has a strong balance sheet with total liquidity of $681 million, including $323 million in cash and 5,021 Bitcoin valued at $358 million [18] - The company adopted fair value accounting for Bitcoin, recognizing a gain of almost $120 million in the second quarter [50] Q&A Session Summary Question: What are the expected construction and energization timelines for the newly acquired sites in Wyoming? - Management indicated that one site is partially ready and expects to complete the 45 megawatt site within 120 days, while the 30 megawatt site will take longer due to being a greenfield project [25][26] Question: How has the M&A landscape evolved since the halving? - Management noted an increase in opportunities as less efficient miners struggle, and they are open to various sizes of acquisitions, leveraging their access to capital [28][29] Question: Can you provide details on the relationship with the utility in Wyoming? - The company highlighted strong political support for Bitcoin in Wyoming and access to low-cost power, which were key factors in choosing the site for expansion [88]