SALT LAKE CITY, Aug. 17, 2021 /PRNewswire/ -- CleanSpark, Inc.
(Nasdaq: CLSK) (the "Company"), a clean Bitcoin mining and
diversified software and services company, yesterday reported
results after the close of the US markets for the three and nine
months ended June 30, 2021.
August Bitcoin Run-Rate to Achieve Annualized Revenue of
$137M to $154M, with Significant Expansion
Anticipated.
The Company's Quarterly Report on Form 10-Q and accompanying
unaudited interim financial statements are available at www.sec.gov
and the Company website at
https://ir.cleanspark.com/sec-filings/.
As previously announced, the Company held its third quarter 2021
live virtual earnings presentation and business update for
investors and analysts on August 16,
2021, at 1 p.m.
PDT/4 p.m. EDT. A recording of
the call is available for replay at:
https://globalmeet.webcasts.com/viewer/event.jsp?ei=1486534&tp_key=e7f1f1fab1
A transcript of the event is available on the Company's
website.
Financial Highlights
Nine months ended June 30,
2021
- Revenues for the nine months ended June
30, 2021, were $22.3 million,
an increase of $14.2 million, or
176%, from $8.1 million for the same
prior year period.
- Net loss for the nine months ended June
30, 2021, was ($16.4) million,
or ($0.60) loss per share, compared
to a loss of ($16.3) million, or
($2.32) loss per share, for the same
prior year period, an improvement of $1.72 per share.
- Adjusted EBITDA, a non-GAAP term, resulted in a non-GAAP net
loss for the nine months ended June 30,
2021, of ($2.7) million, or
($0.10) loss per share, compared to a
loss of ($4.1) million, or
($0.58) loss per share, for the same
prior year period.
- Adjusted EBITDA after incorporation of non-recurring costs, a
non-GAAP term, resulted in a non-GAAP net income for the nine
months ended June 30, 2021, of
$6.2 million, or $0.23 earnings per share, compared to a net loss
of ($3.9) million, or ($0.56) loss per share, for the same prior year
period—an improvement of $0.79 per
share.
Three months ended June 30,
2021
- Revenues for the three months ended June
30, 2021, were $11.9 million,
an increase of $8.5 million, or 250%,
from $3.4 million for the same prior
year period.
- Net loss for the three months ended June
30, 2021, was ($16.7) million,
or ($0.49) basic loss per share,
compared to a loss of ($8.5) million,
or ($0.77) loss per share, for the
same prior year period—an improvement of $0.28 per share.
- Adjusted EBITDA, a non-GAAP term, resulted in a non-GAAP net
loss for the three months ended June 30,
2021, of ($3.6) million, or
($0.11) loss per share, compared to a
loss of ($1.1) million, or
($0.10) loss per share, for the same
prior year period.
- Adjusted EBITDA after incorporation of non-recurring costs, a
non-GAAP term, resulted in a non-GAAP net income for the three
months ended June 30, 2021, of
$2.3 million, or $0.07 earnings per share, compared to a net loss
of ($1.1) million, or ($0.10) loss per share, for the same prior year
period—an improvement of $0.17 per
share.
Bitcoin Mining Production
- In the quarter ended June 30, 2021, the Company produced
more than 191 Bitcoins and has produced an aggregate of 598
Bitcoins since acquiring its mining operations on December 10,
2021, through August 14, 2021.
Balance Sheet Highlights as of June
30, 2021
Assets:
- Cash: $22.2 Million
- Digital Currency: $10.4 Million,
or 301.4 Bitcoin
- Total Current assets: $51.9
Million
- Total Mining assets (Prepaid Deposits/Deployed Miners):
$188.2 Million
- Total Assets: $297.5 Million
Liabilities and Stockholders' equity:
- Current Liabilities: $11.9
Million
- Total Liabilities: $15.7
Million
- Total Stockholders' Equity: $281.8
Million
Working capital
Working capital of $39.9 million
as of June 30, 2021, compared to
$2.9 million as of September 30, 2020, for an increase of
$37.0 million.
Operational Highlights - Quarter ended June 30, 2021
- Current hashrate capacity now exceeds 820 PH/s, which is nearly
double the capacity just 46 days ago. The Company anticipates
achieving 1.0 EH/s in production capacity within the coming month
when the balance of the mining rigs scheduled to be hashing in
August are installed. To put this in perspective, the Company
produced just over 3 BTC on June 30.
It is now capable of producing between 6 and 7 Bitcoin per day. At
current difficulty rates, 1.0 EH/s would result in approximately
8-9 bitcoins per day, which would result in $376,000 to $423,000 per day, or $137
million to $154 million in
annualized revenue, using a bitcoin price of $47,000.
- CleanSpark continues to work on expanding its total energy
capacity to accelerate the growth of its bitcoin mining operations
in Atlanta this fall. The
expansion will bring this site's total capacity to 50 MW. In
addition to this expansion, a partnership with Coinmint has allowed
the Company to continue growth while construction is ongoing. All
the new mining rigs received this summer were promptly deployed
with Coinmint. This partnership has increased the total available
power for mining by approximately 25 MW.
- CleanSpark has over 22,000 of the latest generation Bitmain S19
and S19 Pro mining rigs scheduled to arrive and be installed over
the next 12 to 14 months, and the Company expects to place
additional orders in the near future to continue growing its mining
fleet beyond what it has currently ordered. As a result of these
pre-orders, the hashrate is expected to increase to 3.4 EH/s.
For perspective, at current difficulty rates, if the full 3.4 EH/s
of capacity were in place today it would result in 26 to 28
bitcoins per day. This capacity, in turn, would result in
$1.2 to $1.3
million per day, or $446
million to $480 million in
annualized revenue, using a Bitcoin price of $47,000.
- CleanSpark has seen continued growth in its Electric Vehicle
(EV) charging initiative, with 15 EV companies now using the
Company's OpenADR software solutions to aid in load management for
EV charging stations and balancing the impact the increased power
demand has on the traditional grid.
- The Company continues to see strong growth trends in the energy
business. CleanSpark executed over $6.0
million in additional energy-related contracts last quarter
and increased its quarter-over-quarter revenues by 61%. This strong
sales growth has resulted in a very robust backlog that is expected
to result in positive revenue growth over the next several
quarters. Although the Company is seeing strong sales growth, the
energy industry as a whole is still encountering certain global
supply chain constraints, such as the tight battery supply
experienced in the Company's past quarter. Fortunately, the supply
chain is being shored up and a large number of batteries were
received into inventory in June and July. CleanSpark expects
positive improvements to the overall global supply chain and
continued normalization through the balance of 2021.
Parties interested in learning more about CleanSpark products
and services are encouraged to inquire by contacting the Company
directly at info@cleanspark.com or visiting the Company's website
at www.cleanspark.com.
Investors are encouraged to contact the Company
at ir@cleanspark.com, or by visiting the Company's
website.
About CleanSpark:
CleanSpark, Inc., a Nevada
corporation, is an energy technology and clean Bitcoin mining
Company that is focused on solving modern energy challenges. The
Company and its subsidiaries also own and operate a fleet of
Bitcoin miners at its facilities outside
of Atlanta, Georgia.
For more information about the Company, please visit the
Company's website
at https://www.cleanspark.com/investor-relations .
Non-GAAP Financial Measures
Management believes that the use of adjusted earnings before
interest, taxes, depreciation and amortization, or adjusted EBITDA,
is helpful for an investor to assess the performance of the
Company. The Company defines adjusted EBITDA as income (loss)
attributable to common stockholders before interest, taxes,
depreciation, amortization, impairment of long-lived assets,
financing costs, stock-based compensation expense, other non-cash
expenses, certain non-recurring expenses, and expenses related to
discontinued operations.
Adjusted EBITDA and Adjusted EPS is not a measurement of
financial performance under generally accepted accounting
principles in the United States,
or GAAP. Because of varying available valuation methodologies,
subjective assumptions and the variety of equity instruments that
can impact a company's non-cash operating expenses, CleanSpark
management believes that providing a non-GAAP financial measure
that excludes non-cash and non-recurring expenses allows for
meaningful comparisons between the Company's core business
operating results and those of other companies, as well as
providing 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.
The Company's adjusted EBITDA measure may not provide
information that is directly comparable to that provided by other
companies in its industry, as other companies in its industry may
calculate non-GAAP financial results differently, particularly
related to non-recurring, unusual items. The Company's adjusted
EBITDA is not a measurement of financial performance under GAAP,
and should not be considered as an alternative to operating income
or as an indication of operating performance or any other measure
of performance derived in accordance with GAAP. CleanSpark
management does not consider adjusted EBITDA to be a substitute
for, or superior to, the information provided by GAAP financial
results.
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
|
June 30,
2020
|
Net Income/(Loss)
attributable to shareholders (US GAAP)
|
$
|
(16,677,127)
|
$
|
(8,551,301)
|
Less: Depreciation,
amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
3,656,757
|
|
745,244
|
Stock based
compensation
|
|
3,399,371
|
|
261,432
|
Impairment
expense
|
|
3,720,481
|
|
-
|
Interest, financing
charges, non-cash amortization of debt discounts
|
|
(28,625)
|
|
7,066,496
|
Unrealized
(gain)/loss on equity/derivative security
|
|
2,231,360
|
|
(638,794)
|
Non-cash amortization
of right of use assets
|
|
105,255
|
|
11,274
|
Total:
|
$
|
13,084,599
|
$
|
7,445,652
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
(3,592,528)
|
$
|
(1,105,649)
|
|
|
|
|
|
One-time and
non-recurring expenses
|
$
|
5,895,239
|
$
|
-
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of onetime and non-recurring
expenses)
|
$
|
2,302,711
|
$
|
(1,105,649)
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
34,014,221
|
|
11,119,288
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA earnings/(loss) per common share - basic
|
$
|
(0.11)
|
$
|
(0.10)
|
Non-GAAP Adjusted
EBITDA (after elimination of non-recurring expenses)
earnings/(loss) per common share - basic
|
$
|
0.07
|
$
|
(0.10)
|
|
|
|
|
|
Nine Months
Ended
|
|
|
June 30,
2021
|
|
June 30,
2020
|
Net Income/(Loss)
attributable to shareholders (US GAAP)
|
$
|
(16,622,124)
|
$
|
(16,282,653)
|
Less: Depreciation,
amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
6,883,020
|
|
2,126,313
|
Stock based
compensation
|
|
8,599,029
|
|
1,171,632
|
Impairment
expense
|
|
3,720,481
|
|
-
|
Interest, financing
charges, non-cash amortization of debt discounts
|
|
(101,367)
|
|
10,518,094
|
Unrealized
(gain)/loss on equity/derivative security
|
|
(5,418,275)
|
|
(1,622,553)
|
Non-cash amortization
of right of use assets
|
|
271,715
|
|
33,000
|
Total:
|
$
|
13,954,603
|
$
|
12,226,486
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
(2,667,521)
|
$
|
(4,056,167)
|
|
|
|
|
|
One-time and
non-recurring expenses
|
$
|
8,851,137
|
$
|
130,000
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of non-recurring expenses)
|
$
|
6,183,616
|
$
|
(3,926,167)
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
27,355,111
|
|
7,003,927
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA earnings/(loss) per common share - basic
|
$
|
(0.10)
|
$
|
(0.58)
|
Non-GAAP Adjusted
EBITDA (after elimination of non-recurring expenses)
earnings/(loss) per common share - basic
|
$
|
0.23
|
$
|
(0.56)
|
Forward-Looking Statements:
This release contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995, including
statements regarding the Company's plans and expectations for
expansion of its energy initiatives, deployment of miners, the
growth of the facility and other statements regarding the
expectations, beliefs, plans, intentions, and strategies of the
Company. The Company has tried to identify these forward-looking
statements by using words such as "expect," "target," "anticipate,"
"believe," "could," "should," "estimate," "intend," "may," "will,"
"plan," "goal" and similar terms and phrases, but such words, terms
and phrases are not the exclusive means of identifying such
statements. Actual results, performance and achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements due to a variety of risks, uncertainties
and other factors, including, without limitation: delays in
equipment and battery energy storage systems availability and
delivery, the successful deployment of energy solutions for
residential and commercial applications, the fitness of the
Company's energy hardware, software and other solutions for this
particular application or market, the expectations of future
revenue growth may not be realized, ongoing demand for the
Company's software products and related services, the impact of
global pandemics (including COVID-19) on the demand for our
products and services; 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 and any
subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and we undertake no obligation to
revise or update this press release (including any forward-looking
statements contained herein) to reflect events or circumstances
after the date hereof.
Contact - Investor Relations:
CleanSpark Inc.
Investor Relations
(801)-244-4405
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SOURCE CleanSpark, Inc.