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, May 9, 2024 /PRNewswire/ -- 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
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multimedia:https://www.prnewswire.com/news-releases/cleanspark-reports-second-quarter-fy2024-financial-results-302140968.html
SOURCE CleanSpark, Inc.