FY2024 Second Quarter Revenue of $111.8 million, net income of $126.7 million and Adjusted EBITDA of $181.8 million  

 

Revenue grows 163% YoY 

 

Current hashrate surpasses 17 EH/s 

 

LAS VEGAS—CleanSpark, Inc. (Nasdaq: CLSK) (the “Company”), America’s Bitcoin Miner™, today reported financial results for the three months ended March 31, 2024. The Company will hold its earnings call today at 1:30 p.m. PT / 4:30 p.m. ET.

 

“We’ve achieved remarkable milestones this past quarter, ultimately becoming what we believe to be the top operator at scale in the industry, as we increased our operational capacity by over 60%, extended our footprint with new facilities in Mississippi and Georgia, and bolstered our total capacity to over 17 EH/s,” said Zach Bradford, CEO. “These efforts have driven a significant rise in our revenue, underscoring the effectiveness of our strategic initiatives and targeted growth. As we press ahead, our focus remains on innovation, measured growth, and strengthening our unique position in the market to deliver sustained value to our shareholders. Our commitment is not only to today’s success but to fostering a resilient and thriving future for all our stakeholders.”

 

“The second quarter was record breaking and historic for CleanSpark, as we recognized approximately $112 million of revenue,” said Gary A. Vecchiarelli, CFO.  “Our margins have also increased over the preceding first quarter which were helped by the rise in bitcoin prices and expanded margins. At our wholly owned sites, we experienced wholesale power costs as low as 1.3 cents per kilowatt hour, and a very favorable all-in power cost of 4.3 cents per kilowatt hour. We also ended the quarter with almost $700 million in cash and bitcoin, and virtually no debt, which put us in a strong position for the halving and will allow us to take advantage of opportunities the halving presents.”

 

Q2 Financial Highlights

 

Financial Results for the Three Months Ended March 31, 2024 

 

  • The Company increased its quarterly revenues to $111.8 million, an increase of $69.3 million, or 163% from $42.5 million for the same prior year period. 
  • Net income for the three months ended March 31, 2024, was $126.7 million or $0.59 basic income per share compared to a loss of ($18.5) million or ($0.23) loss per share for the same prior year period. 
  • Adjusted EBITDA1 increased to $181.8 million, increasing from $12.7 million in the same prior year period.

 Balance Sheet Highlights as of March 31, 2024

 

Assets

  • Cash: $323.1 million
  • Bitcoin: $358.0 million
  • Total Current assets: $687.8 million
  • Total Mining assets (including prepaid deposits & deployed miners): $623.1 million
  • Total Assets: $1.54 billion

Liabilities and Stockholders’ Equity

 

  • Current Liabilities: $55.0 million
  • Total Liabilities: $74.4 million
  • Total Stockholders’ Equity: $1,462.9 million

The Company had working capital of $632.7 million and $12.8 million of debt as of March 31, 2024.

 

Investor Conference Call and Webcast

 

The Company will hold its second quarter FY2024 earnings presentation and business update for investors and analysts today, May 9, 2024, at 1:30 p.m. PT / 4:30 p.m. ET. Webcast URL: https://investors.cleanspark.com. 

 

The webcast will be accessible for at least 30 days on the Company’s website and a transcript of the call will be available on the Company’s website following the call.

 

About CleanSpark

 

CleanSpark (Nasdaq: CLSK) is America’s Bitcoin Miner™. We own and operate data centers that primarily run on low-carbon power. Our infrastructure responsibly supports Bitcoin, the world’s most important digital commodity and an essential tool for financial independence and inclusion. We cultivate trust and transparency among our employees and the communities we operate in. Visit our website at www.cleanspark.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: strategic targets of management; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law.

 

Non-GAAP Measure

 

The Company presents adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States(“GAAP”). The Company’s non-GAAP “Adjusted EBITDA” excludes (i) impacts of interest, taxes, and depreciation; (ii) the Company’s share-based compensation expense, unrealized gains/losses on securities, and, changes in the fair value of contingent consideration with respect to previously completed acquisitions,  all of which are non-cash items that the Company believes are not reflective of the Company’s general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) non-cash impairment losses related to long-lived assets (including goodwill); (iv) realized gains and losses on sales of equity securities, the amounts of which are directly related to the unrealized gains and losses that are also excluded; (v) legal fees related to litigation and various transactions, which fees management does not believe are reflective of the Company’s ongoing operating activities; (vi) gains and losses on disposal of assets, the majority of which are related to obsolete or unrepairable machines that are no longer deployed;  (vii) gains and losses related to discontinued operations that would not be applicable to the Company’s future business activities; and (viii) severance expenses. The Company previously excluded non-cash impairment losses related to digital assets and realized gains and losses on sales of bitcoin from our calculation of adjusted EBITDA, but has determined such items are part of the Company’s normal ongoing operations and will no longer be excluding them from our calculation of adjusted EBITDA.

 

Management believes that providing this non-GAAP financial measure that excludes these items allows for meaningful comparisons between the Company’s core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management’s internal use of non-GAAP adjusted EBITDA, management believes that adjusted EBITDA is also useful to investors and analysts in comparing the Company’s performance across reporting periods on a consistent basis.  Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate our bitcoin related revenues).  For example, the Company expects that share-based compensation expense, which is excluded from adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, and directors. Additionally, management does not consider any of the excluded items to be expenses necessary to generate the Company’s bitcoin related revenue.

 

The Company’s adjusted EBITDA measure may not be directly comparable to similar measures  provided by other companies in our industry, as other companies in the Company’s industry may calculate non-GAAP financial results differently. The Company’s adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating (loss) income or any other measure of performance derived in accordance with GAAP. Although management utilizes internally and presents adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by GAAP financial results.

 

Accordingly, adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company’s Consolidated Financial Statements, which have been prepared in accordance with GAAP.

 

CLEANSPARK, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share amounts)

 

 

 

March 31,
2024

 

 

September 30,
2023

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents, including restricted cash

 

$

323,052

 

 

$

29,215

 

Accounts receivable, net

 

 

 

 

 

5

 

Inventory

 

 

991

 

 

 

809

 

Prepaid expense and other current assets

 

 

4,134

 

 

 

12,034

 

Bitcoin (See Note 2 and Note 5)

 

 

357,981

 

 

 

56,241

 

Derivative investment asset

 

 

505

 

 

 

2,697

 

Investment in debt security, AFS, at fair value

 

 

784

 

 

 

726

 

Current assets held for sale

 

 

324

 

 

 

445

 

Total current assets

 

$

687,771

 

 

$

102,172

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

670,510

 

 

$

564,395

 

Operating lease right of use asset

 

 

228

 

 

 

688

 

Intangible assets, net

 

 

3,736

 

 

 

4,603

 

Deposits on miners and mining equipment

 

 

161,309

 

 

 

75,959

 

Other long-term asset

 

 

5,718

 

 

 

5,718

 

Goodwill

 

 

8,043

 

 

 

8,043

 

Total assets

 

$

1,537,315

 

 

$

761,578

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

43,632

 

 

$

65,577

 

Current portion of operating lease liability

 

 

177

 

 

 

181

 

Current portion of finance lease liability

 

 

52

 

 

 

130

 

Current portion of long-term loans payable

 

 

7,686

 

 

 

6,992

 

Dividends payable

 

 

2,842

 

 

 

 

Current liabilities held for sale

 

 

637

 

 

 

1,175

 

Total current liabilities

 

$

55,026

 

 

$

74,055

 

Long-term liabilities

 

 

 

 

 

 

Operating lease liability, net of current portion

 

 

431

 

 

 

519

 

Finance lease liability, net of current portion

 

 

 

 

 

9

 

Loans payable, net of current portion

 

 

5,090

 

 

 

8,911

 

Deferred income taxes

 

 

13,851

 

 

 

857

 

Total liabilities

 

$

74,398

 

 

$

84,351

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock; $0.001 par value; 300,000,000 shares authorized; 225,469,791 and 160,184,921 shares issued and outstanding, respectively

 

 

225

 

 

 

160

 

Preferred stock; $0.001 par value; 10,000,000 shares authorized; Series A shares; 2,000,000 authorized; 1,750,000 and 1,750,000 issued and outstanding, respectively

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

1,641,643

 

 

 

1,009,482

 

Accumulated other comprehensive income

 

 

284

 

 

 

226

 

Accumulated deficit

 

 

(179,237

)

 

 

(332,643

)

Total stockholders’ equity

 

 

1,462,917

 

 

 

677,227

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,537,315

 

 

$

761,578

 

 

 

 

CLEANSPARK, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands, except per share and share amounts)

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

March 31,
2024

 

 

March 31,
2023

 

 

March 31,
2024

 

 

March 31,
2023

 

Revenues, net

 

 

 

 

 

 

 

 

 

 

 

 

Bitcoin mining revenue, net

 

$

111,799

 

 

$

42,488

 

 

$

185,585

 

 

$

70,234

 

Other services revenue

 

 

 

 

 

58

 

 

 

 

 

 

131

 

Total revenues, net

 

$

111,799

 

 

$

42,546

 

 

$

185,585

 

 

$

70,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation and amortization shown below)

 

 

34,298

 

 

 

22,082

 

 

 

63,194

 

 

 

42,498

 

Professional fees

 

 

2,208

 

 

 

3,750

 

 

 

3,780

 

 

 

6,581

 

Payroll expenses

 

 

16,820

 

 

 

9,750

 

 

 

32,141

 

 

 

19,552

 

General and administrative expenses

 

 

6,819

 

 

 

4,329

 

 

 

11,822

 

 

 

8,053

 

Loss on disposal of assets

 

 

1,652

 

 

 

3

 

 

 

2,329

 

 

 

3

 

Gain on fair value of bitcoin, net (see Note 2 and Note 5)

 

 

(119,702

)

 

 

 

 

 

(155,743

)

 

 

 

Other impairment expense (related to bitcoin)

 

 

 

 

 

194

 

 

 

 

 

 

277

 

Impairment expense – other

 

 

396

 

 

 

 

 

 

396

 

 

 

 

Realized gain on sale of bitcoin

 

 

 

 

 

(1,422

)

 

 

 

 

 

(905

)

Depreciation and amortization

 

 

32,187

 

 

 

21,346

 

 

 

62,034

 

 

 

40,675

 

Total costs and expenses

 

$

(25,322

)

 

$

60,032

 

 

$

19,953

 

 

$

116,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

137,121

 

 

 

(17,486

)

 

 

165,632

 

 

 

(46,369

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

11

 

 

 

 

 

 

11

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

 

 

485

 

Unrealized (loss) gain on derivative security

 

 

(949

)

 

 

56

 

 

 

(2,192

)

 

 

(1,215

)

Interest income

 

 

2,684

 

 

 

52

 

 

 

3,270

 

 

 

122

 

Interest expense

 

 

(526

)

 

 

(799

)

 

 

(1,072

)

 

 

(1,688

)

Total other income (expense)

 

$

1,209

 

 

$

(680

)

 

$

6

 

 

$

(2,285

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

 

138,330

 

 

 

(18,166

)

 

 

165,638

 

 

 

(48,654

)

Income tax expense

 

 

11,595

 

 

 

 

 

 

12,994

 

 

 

 

Income (loss) from continuing operations

 

$

126,735

 

 

$

(18,166

)

 

$

152,644

 

 

$

(48,654

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations

 

$

 

 

$

(294

)

 

$

 

 

$

1,163

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income on discontinued operations

 

$

 

 

$

(294

)

 

$

 

 

$

1,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

126,735

 

 

$

(18,460

)

 

$

152,644

 

 

$

(47,491

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

2,842

 

 

 

 

 

 

3,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

 

$

123,893

 

 

$

(18,460

)

 

$

149,223

 

 

$

(47,491

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

29

 

 

 

29

 

 

 

58

 

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) attributable to common shareholders

 

$

123,922

 

 

$

(18,431

)

 

$

149,281

 

 

$

(47,433

)

 

CLEANSPARK, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

(Unaudited, in thousands, except per share and share amounts)

 

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

March 31,
2024

 

 

March 31,
2023

 

 

March 31,
2024

 

 

March 31,
2023

 

Income (loss) from continuing operations per common share – basic

 

$

0.59

 

 

$

(0.23

)

 

$

0.77

 

 

$

(0.66

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

209,287,089

 

 

 

80,469,471

 

 

 

193,964,904

 

 

 

73,450,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations per common share – diluted

 

$

0.58

 

 

$

(0.23

)

 

$

0.76

 

 

$

(0.66

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – diluted

 

 

212,099,068

 

 

 

80,469,471

 

 

 

196,903,594

 

 

 

74,032,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income on discontinued operations per common share – basic

 

$

 

 

$

(0.00

)

 

$

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

209,287,089

 

 

 

80,469,471

 

 

 

193,964,904

 

 

 

73,450,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income on discontinued operations per common share – diluted

 

$

 

 

$

(0.00

)

 

$

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – diluted

 

 

212,099,068

 

 

 

80,469,471

 

 

 

196,903,594

 

 

 

74,032,082

 

 

 

CLEANSPARK, INC.

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited, in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net income (loss)

 

$

126,735

 

 

$

(18,460

)

Adjustments:

 

 

 

 

 

 

 

 

Loss on discontinued operations

 

$

 

 

$

294

 

Impairment expense – other

 

 

396

 

 

 

 

Depreciation and amortization

 

 

32,187

 

 

 

21,346

 

Share-based compensation expense

 

 

9,797

 

 

 

5,743

 

Unrealized loss (gain) on derivative security

 

 

949

 

 

 

(56

)

Interest income

 

 

(2,684

)

 

 

(52

)

  Interest expense

 

 

526

 

 

 

799

 

  Loss on disposal of assets

 

1,652

 

 

3

 

  Income tax expense

 

11,595

 

 

 

  Other2

 

676

 

 

3,104

 

Total Adjusted EBITDA

 

$

181,829

 

 

$

12,721

 

 

 

 

 

 

 

 

 

 

Three months ended

December 31, 2023

 

 

 

Revenues, net

 

 

 

 

 

Digital currency mining revenue, net

 

$

73,786

 

 

 

Other services revenue

 

 

 

 

 

Total revenues, net

 

$

73,786

 

 

 

 

 

 

 

 

 

Net income

 

$

25,909

 

 

 

Adjustments:

 

 

 

 

 

 

Depreciation and amortization

 

 

29,847

 

 

 

Share-based compensation expense

 

 

9,953

 

 

 

  Unrealized loss on derivative security

 

 

1,243

 

 

 

  Interest income

 

(586

)

 

 

  Interest expense

 

546

 

 

 

  Loss on disposal of assets

 

677

 

 

 

  Income tax expense

 

1,399

 

 

 

  Other2

 

102

 

 

 

Total Adjusted EBITDA

 

$

69,090

 

 

 

 

 

 

 

 

 

                             

We have not excluded our net gain on fair value of bitcoin ($36,041 and $119,702 in the quarters ended March 31, 2024 and December 31, 2023, respectively), which we now record in our statement of operations, as provided for in ASC 350-60 and as discussed elsewhere in our Form 10-Q.

2 Includes fees and expenses related to litigation, settlements, financing & business development transactions.

 

Investor Relations Contact

Brittany Moore
702-989-7693
ir@cleanspark.com

 

Media Contact

Eleni Stylianou
702-989-7694
pr@cleanspark.com