FY2024 Third Quarter Revenue of
Revenue grows
Current hashrate surpasses 22 EH/s
Partners with Coinbase on
“We had a tremendous quarter with a
“CleanSpark weathered the challenges of the bitcoin halving with one of the most efficient mining portfolios as evidenced by our strong gross margins,” said Gary A. Vecchiarelli, CFO. “During the third quarter, we saw block rewards get cut by
Q3 Financial Highlights
Financial Results for the Three Months Ended June 30, 2024.
- The Company increased its quarterly revenues to
, an increase of$104.1 million , or$58.6 million 129% from for the same prior year period.$45.5 million - Net loss for the three months ended June 30, 2024 was
( or ($236.2) million ) basic income loss per share compared to a loss of$1.03 ( or ($14.1) million ) loss per share for the same prior year period.$0.12 - Adjusted EBITDA1 decreased to
( , a decrease of$12.7) million ( from$26.0) million in the prior year.$13.3 million
Balance Sheet Highlights as of June 30, 2024
Assets
- Cash:
$129.2 million - Bitcoin:
$413.0 million - Total Current assets:
$598.8 million - Total Mining assets (including prepaid deposits & deployed miners):
$625.8 million - Total Assets:
$1.48 billion
Liabilities and Stockholders’ Equity
- Current Liabilities:
$67.0 million - Total Liabilities:
$73.4 million - Total Stockholders’ Equity:
$1.40 billion
The Company had working capital of
Investor Conference Call and Webcast
The Company will hold its third quarter FY2024 earnings presentation and business update for investors and analysts today, August 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 multiple 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: achieving our future growth plans; using the line of credit and realizing a lower cost of capital; closing on announced expansions; 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.
1 See “Non-GAAP Measure” and the related reconciliation below. |
Non-GAAP Measure
The Company presents adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in
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. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) |
||||||||
June 30, |
September 30, |
|||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
126,141 |
$ |
29,215 |
||||
Restricted cash |
3,023 |
— |
||||||
Receivable from equity offerings |
31,158 |
9,590 |
||||||
Prepaid expense and other current assets |
7,656 |
3,258 |
||||||
Bitcoin (see Note 2 and Note 5) |
413,033 |
56,241 |
||||||
Note receivable from GRIID (see Note 6) |
15,000 |
— |
||||||
Derivative investment asset |
1,692 |
2,697 |
||||||
Investment in debt security, at fair value |
812 |
726 |
||||||
Current assets held for sale |
320 |
445 |
||||||
Total current assets |
$ |
598,835 |
$ |
102,172 |
||||
Property and equipment, net |
$ |
568,393 |
$ |
564,395 |
||||
Operating lease right of use asset |
2,872 |
688 |
||||||
Intangible assets, net |
3,580 |
4,603 |
||||||
Deposits on miners and mining equipment |
284,541 |
75,959 |
||||||
Other long-term assets |
9,311 |
5,718 |
||||||
Goodwill |
8,043 |
8,043 |
||||||
Total assets |
$ |
1,475,575 |
$ |
761,578 |
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ |
56,488 |
$ |
65,577 |
||||
Current portion of operating lease liability |
198 |
181 |
||||||
Current portion of finance lease liability |
23 |
130 |
||||||
Current portion of long-term loans payable |
9,665 |
6,992 |
||||||
Current liabilities held for sale |
611 |
1,175 |
||||||
Total current liabilities |
$ |
66,985 |
$ |
74,055 |
||||
Long-term liabilities |
||||||||
Operating lease liability, net of current portion |
721 |
519 |
||||||
Finance lease liability, net of current portion |
— |
9 |
||||||
Loans payable, net of current portion |
1,314 |
8,911 |
||||||
Deferred income taxes, net |
4,356 |
857 |
||||||
Total liabilities |
$ |
73,376 |
$ |
84,351 |
||||
Stockholders’ equity |
||||||||
Preferred stock; |
2 |
2 |
||||||
Common stock; |
236 |
160 |
||||||
Additional paid-in capital |
1,817,128 |
1,009,482 |
||||||
Accumulated other comprehensive income |
312 |
226 |
||||||
Accumulated deficit |
(415,479) |
(332,643) |
||||||
Total stockholders’ equity |
1,402,199 |
677,227 |
||||||
Total liabilities and stockholders’ equity |
$ |
1,475,575 |
$ |
761,578 |
CLEANSPARK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited, in thousands, except per share and share amounts) |
|||||||||||||||||
For the three months ended |
For the nine months ended |
||||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||
Revenues, net |
|||||||||||||||||
Bitcoin mining revenue, net |
$ |
104,108 |
$ |
45,427 |
$ |
289,693 |
$ |
115,661 |
|||||||||
Other services revenue |
— |
96 |
— |
227 |
|||||||||||||
Total revenues, net |
$ |
104,108 |
$ |
45,523 |
$ |
289,693 |
$ |
115,888 |
|||||||||
Costs and expenses |
|||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization |
45,180 |
20,681 |
108,374 |
63,179 |
|||||||||||||
Professional fees |
4,368 |
2,225 |
8,149 |
8,806 |
|||||||||||||
Payroll expenses |
17,150 |
10,405 |
49,291 |
29,957 |
|||||||||||||
General and administrative expenses |
8,235 |
5,064 |
20,058 |
13,117 |
|||||||||||||
(Gain) loss on disposal of assets |
(47) |
— |
2,281 |
3 |
|||||||||||||
Loss (gain) on fair value of bitcoin, net (see Note 2 and Note |
48,338 |
— |
(107,406) |
— |
|||||||||||||
Impairment expense – bitcoin |
— |
740 |
— |
1,017 |
|||||||||||||
Impairment expense – fixed assets |
189,235 |
— |
189,235 |
— |
|||||||||||||
Impairment expense – other |
— |
— |
396 |
— |
|||||||||||||
Realized loss (gain) on sale of bitcoin |
— |
143 |
— |
(762) |
|||||||||||||
Depreciation and amortization |
40,727 |
21,850 |
102,761 |
62,525 |
|||||||||||||
Total costs and expenses |
$ |
353,186 |
$ |
61,108 |
$ |
373,139 |
$ |
177,842 |
|||||||||
Loss from operations |
(249,078) |
(15,585 |
(83,446) |
(61,954) |
|||||||||||||
Other income (expense) |
|||||||||||||||||
Other income |
— |
— |
— |
11 |
|||||||||||||
Change in fair value of contingent consideration |
— |
2,000 |
— |
2,485 |
|||||||||||||
Unrealized gain (loss) on derivative security |
1,188 |
105 |
(1,005) |
(1,110) |
|||||||||||||
Interest income |
2,638 |
52 |
5,909 |
174 |
|||||||||||||
Interest expense |
(485) |
(689 |
(1,557) |
(2,377) |
|||||||||||||
Total other income (expense) |
$ |
3,341 |
$ |
1,468 |
$ |
3,347 |
$ |
(817) |
|||||||||
Loss before income tax expense |
(245,737) |
(14,117 |
(80,099) |
(62,771) |
|||||||||||||
Income tax (benefit) expense |
(9,495) |
— |
3,499 |
— |
|||||||||||||
Loss from continuing operations |
$ |
(236,242) |
$ |
(14,117 |
$ |
(83,598) |
$ |
(62,771) |
|||||||||
Discontinued operations |
|||||||||||||||||
(Loss) income from discontinued operations |
$ |
— |
$ |
(102 |
$ |
— |
$ |
1,061 |
|||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||||
(Loss) income on discontinued operations |
$ |
— |
$ |
(102 |
$ |
— |
$ |
1,061 |
|||||||||
Net loss |
$ |
(236,242) |
$ |
(14,219 |
$ |
(83,598) |
$ |
(61,710) |
|||||||||
Preferred stock dividends |
— |
— |
3,421 |
— |
|||||||||||||
Net loss attributable to common shareholders |
$ |
(236,242) |
$ |
(14,219 |
$ |
(87,019) |
$ |
(61,710) |
|||||||||
Other comprehensive income |
28 |
28 |
86 |
86 |
|||||||||||||
Total comprehensive (loss) income attributable to common |
$ |
(236,214) |
$ |
(14,191 |
$ |
(86,933) |
$ |
(61,624) |
CLEANSPARK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Continued) (Unaudited, in thousands, except per share and share amounts) |
||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
(Loss) income from continuing operations per common share – |
$ |
(1.03) |
$ |
(0.12) |
$ |
(0.42) |
$ |
(0.72) |
||||||||
Weighted average common shares outstanding – basic |
228,642,939 |
114,844,402 |
205,482,062 |
87,248,719 |
||||||||||||
(Loss) income from continuing operations per common share – |
$ |
(1.03) |
$ |
(0.12) |
$ |
(0.42) |
$ |
(0.72) |
||||||||
Weighted average common shares outstanding – diluted |
228,642,939 |
114,844,402 |
205,482,062 |
87,638,134 |
||||||||||||
Income on discontinued operations per common share – basic |
$ |
— |
$ |
— |
$ |
— |
$ |
0.01 |
||||||||
Weighted average common shares outstanding – basic |
228,642,939 |
114,844,402 |
205,482,062 |
87,248,719 |
||||||||||||
Income on discontinued operations per common share – diluted |
$ |
— |
$ |
— |
$ |
— |
$ |
0.01 |
||||||||
Weighted average common shares outstanding – diluted |
228,642,939 |
114,844,402 |
205,482,062 |
87,638,134 |
CLEANSPARK, INC. RECONCILIATION OF ADJUSTED EBITDA (Unaudited, in thousands) |
||||||||||||||||
Three Months Ended June 30, |
||||||||||||||||
2024 |
2023 |
|||||||||||||||
Net income (loss) |
$ |
(236,242) |
$ |
(14,219) |
||||||||||||
Adjustments: |
||||||||||||||||
Loss (income) on discontinued operations |
— |
102 |
||||||||||||||
Impairment expense – other |
— |
— |
||||||||||||||
Impairment expense – fixed assets |
189,235 |
— |
||||||||||||||
Depreciation and amortization |
40,727 |
21,850 |
||||||||||||||
Share-based compensation expense |
2,946 |
5,947 |
||||||||||||||
Change in fair value of contingent consideration |
— |
(2,000) |
||||||||||||||
Unrealized loss (gain) of derivative security |
(1,188) |
(105) |
||||||||||||||
Interest income |
(2,638) |
(52) |
||||||||||||||
Interest expense |
485 |
689 |
||||||||||||||
Loss on disposal of assets |
(47) |
— |
||||||||||||||
Income tax expense |
(9,495) |
— |
||||||||||||||
Fees related to financing & business development transactions |
2,862 |
85 |
||||||||||||||
Litigation & settlement related expenses |
686 |
1,036 |
||||||||||||||
Total Adjusted EBITDA |
$ |
(12,669) |
$ |
13,333 |
||||||||||||
Three months ended March 31, 2024 |
||||||||||||||||
Revenues, net |
||||||||||||||||
Digital currency mining revenue, net |
$ |
111,799 |
||||||||||||||
Other services revenue |
— |
|||||||||||||||
Total revenues, net |
$ |
111,799 |
||||||||||||||
Net income |
$ |
126,735 |
||||||||||||||
Adjustments: |
||||||||||||||||
Depreciation and amortization |
32,187 |
|||||||||||||||
Share-based compensation expense |
9,797 |
|||||||||||||||
Impairment expense – other |
396 |
|||||||||||||||
Unrealized loss on derivative security |
949 |
|||||||||||||||
Interest income |
(2,684) |
|||||||||||||||
Interest expense |
526 |
|||||||||||||||
Loss on disposal of assets |
1,652 |
|||||||||||||||
Income tax expense |
11,595 |
|||||||||||||||
Other2 |
676 |
|||||||||||||||
Total Adjusted EBITDA |
$ |
181,829 |
||||||||||||||
We have not excluded the changes fair value of our bitcoin (loss of |
2 Includes fees and expenses related to litigation, settlements, financing & business development transactions. |
Investor Relations Contact
Brittany
702-989-7693
ir@cleanspark.com
Media Contact
Eleni Stylianou
702-989-7694
pr@cleanspark.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/cleanspark-reports-third-quarter-fy2024-financial-results-302219146.html
SOURCE CleanSpark, Inc.