FY2024 First Quarter Revenue of $73.8 million, net income of $25.9 million and Adjusted EBITDA of $69.1 million
Revenue grows 165% year over year
Current hashrate surpasses 12.5
EH/s
LAS
VEGAS, Feb. 8, 2024 /PRNewswire/ -- CleanSpark,
Inc. (Nasdaq: CLSK) (the "Company"), America's Bitcoin
Miner™, today reported financial results for the three months ended
December 31, 2023.
"This quarter's operational and financial
performance sets the stage for what's to come," said Zach Bradford, CEO.
"This quarter's performance is a powerful reminder of what we're
capable of when we channel our collective efforts towards a common
goal. Importantly, it sets the stage for what's to come," said
Chief Executive Officer Zach
Bradford. "In a single quarter we have covered nearly
half the distance to reach our total revenue from last year. We
beat all consensus estimates across the board, including revenue,
EPS, and profitability. This achievement is not just a number—it's
a reflection of our growing efficiency, our strategic acquisitions,
and our deep commitment to smart growth. It underscores our
position as leaders in the bitcoin mining industry and
fortifies the trust our investors place in us. As we move forward,
our eyes are set on harnessing our momentum to further accelerate
our growth and continue delivering unmatched value to our
stakeholders as we work to execute on our commitment of 20
exahashes per second in the first half of this year."
"We've frequently emphasized the three efficiencies that we
believe are imperative to our continued success, efficiency of our
equipment fleet, efficiency of our facilities, and efficient use of
capital. The results this quarter are the culmination of that
focus," said Chief Financial Officer Gary A. Vecchiarelli. "To present these
results, to have demonstrated exponential growth, and to have
secured our path to 50 exahashes per second while exceeding all
market expectations is proof that the CleanSpark Way is working.
I'm extremely proud of the growth that we've accomplished as a
team. We're well positioned for the halving, and we have the
liquidity and balance sheet strength to enable us to continue to
not only survive, but to thrive into the halving and beyond."
Q1 Financial Highlights
Financial Results for the Three Months Ended December 31, 2023
- The Company increased its quarterly revenues to $73.8 million, an increase of $46.0 million, or 165% from $27.8 million for the same prior year
period.
- Net income for the three months ended December 31, 2023, was $25.9 million or $0.14 basic income per share compared to a loss
of ($29.0) million or ($0.46) loss per share for the same prior year
period.
- Adjusted EBITDA1 increased to $69.1 million, reversing from ($2.0) million in the same prior year
period.
__________________________
|
1 See
"Non-GAAP Measure" and the related reconciliation below.
|
Balance Sheet Highlights as of December 31, 2023
Assets
- Cash: $48.5 million
- Bitcoin: $127.0
million
- Total Current assets: $181.7
million
- Total Mining assets (including prepaid deposits & deployed
miners): $484.0 million
- Total Assets: $862.7 million
Liabilities and Stockholders' Equity
- Current Liabilities: $42.4
million
- Total Liabilities: $52.2
million
- Total Stockholders' Equity: $810.6
million
The Company had working capital of $139.3
million and $14.5 million of
debt as of December 31, 2023.
Investor Conference Call and Webcast
The Company will hold its first quarter FY2024 earnings
presentation and business update for investors and analysts today,
February 8, 2024, at 1:30p.m. PT / 4:30p.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: the
Company achieving growth or increasing growth rates; the Company
achieving 20 EH/s growth targets and when growth targets will be
reached; the Company achieving 50 EH/s growth targets and when
growth targets will be reached; the risk that the electrical power
available to our facilities decreases or does not increase as
expected; the risk that electrical power price increases; 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.
We have not excluded our net gain on fair value of
bitcoin ($36,041 in the
quarter ended December 31, 2023),
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.
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)
|
|
|
|
|
December 31,
2023
|
|
|
September 30,
2023
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash
|
|
$
|
48,458
|
|
|
$
|
29,215
|
|
Accounts receivable,
net
|
|
|
—
|
|
|
|
5
|
|
Inventory
|
|
|
732
|
|
|
|
809
|
|
Prepaid expense and
other current assets
|
|
|
2,971
|
|
|
|
12,034
|
|
Bitcoin (See Note 2
and Note 5)
|
|
|
126,951
|
|
|
|
56,241
|
|
Derivative investment
asset
|
|
|
1,454
|
|
|
|
2,697
|
|
Investment in debt
security, AFS, at fair value
|
|
|
755
|
|
|
|
726
|
|
Current assets held
for sale
|
|
|
384
|
|
|
|
445
|
|
Total current
assets
|
|
$
|
181,705
|
|
|
$
|
102,172
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
$
|
637,481
|
|
|
$
|
564,395
|
|
Operating lease right
of use asset
|
|
|
647
|
|
|
|
688
|
|
Intangible assets,
net
|
|
|
4,089
|
|
|
|
4,603
|
|
Deposits on miners and
mining equipment
|
|
|
25,048
|
|
|
|
75,959
|
|
Other long-term
asset
|
|
|
5,718
|
|
|
|
5,718
|
|
Goodwill
|
|
|
8,043
|
|
|
|
8,043
|
|
Total assets
|
|
$
|
862,731
|
|
|
$
|
761,578
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
33,415
|
|
|
$
|
65,577
|
|
Current portion of
operating lease liability
|
|
|
176
|
|
|
|
181
|
|
Current portion of
finance lease liability
|
|
|
96
|
|
|
|
130
|
|
Current portion of
long-term loans payable
|
|
|
7,421
|
|
|
|
6,992
|
|
Dividends
payable
|
|
|
579
|
|
|
|
—
|
|
Current liabilities
held for sale
|
|
|
706
|
|
|
|
1,175
|
|
Total current
liabilities
|
|
$
|
42,393
|
|
|
$
|
74,055
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Operating lease
liability, net of current portion
|
|
|
474
|
|
|
|
519
|
|
Finance lease
liability, net of current portion
|
|
|
—
|
|
|
|
9
|
|
Loans payable, net of
current portion
|
|
|
7,047
|
|
|
|
8,911
|
|
Deferred income
taxes
|
|
|
2,256
|
|
|
|
857
|
|
Total
liabilities
|
|
$
|
52,170
|
|
|
$
|
84,351
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common stock; $0.001
par value; 300,000,000 shares authorized; 185,554,611
and 160,184,921 shares issued and outstanding,
respectively
|
|
|
186
|
|
|
|
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
|
|
|
1,113,248
|
|
|
|
1,009,482
|
|
Accumulated other
comprehensive income
|
|
|
255
|
|
|
|
226
|
|
Accumulated
deficit
|
|
|
(303,130)
|
|
|
|
(332,643)
|
|
Total stockholders'
equity
|
|
|
810,561
|
|
|
|
677,227
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
862,731
|
|
|
$
|
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
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
Revenues,
net
|
|
|
|
|
|
|
Bitcoin mining
revenue, net
|
|
$
|
73,786
|
|
|
$
|
27,746
|
|
Other services
revenue
|
|
|
—
|
|
|
|
73
|
|
Total revenues,
net
|
|
$
|
73,786
|
|
|
$
|
27,819
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
Cost of revenues
(exclusive of depreciation and amortization shown below)
|
|
|
28,896
|
|
|
|
20,416
|
|
Professional
fees
|
|
|
1,572
|
|
|
|
2,831
|
|
Payroll
expenses
|
|
|
15,321
|
|
|
|
9,802
|
|
General and
administrative expenses
|
|
|
5,003
|
|
|
|
3,724
|
|
Loss on disposal of
assets
|
|
|
677
|
|
|
|
—
|
|
Gain on fair value of
bitcoin, net (see Note 2 and Note 5)
|
|
|
(36,041)
|
|
|
|
—
|
|
Other impairment
expense (related to bitcoin)
|
|
|
—
|
|
|
|
83
|
|
Realized loss on sale
of bitcoin
|
|
|
—
|
|
|
|
517
|
|
Depreciation and
amortization
|
|
|
29,847
|
|
|
|
19,329
|
|
Total costs and
expenses
|
|
$
|
45,275
|
|
|
$
|
56,702
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
28,511
|
|
|
|
(28,883)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
Change in fair value
of contingent consideration
|
|
|
—
|
|
|
|
485
|
|
Unrealized loss on
derivative security
|
|
|
(1,243)
|
|
|
|
(1,271)
|
|
Interest
income
|
|
|
586
|
|
|
|
70
|
|
Interest
expense
|
|
|
(546)
|
|
|
|
(889)
|
|
Total other
(expense) income
|
|
$
|
(1,203)
|
|
|
$
|
(1,605)
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax expense
|
|
|
27,308
|
|
|
|
(30,488)
|
|
Income tax
expense
|
|
|
1,399
|
|
|
|
—
|
|
Income (loss) from
continuing operations
|
|
$
|
25,909
|
|
|
$
|
(30,488)
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
$
|
—
|
|
|
$
|
1,457
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
Income on discontinued
operations
|
|
$
|
—
|
|
|
$
|
1,457
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
25,909
|
|
|
$
|
(29,031)
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
579
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
25,330
|
|
|
$
|
(29,031)
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
29
|
|
|
|
29
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss) attributable to common shareholders
|
|
$
|
25,359
|
|
|
$
|
(29,002)
|
|
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
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
Income (loss) from
continuing operations per common share - basic
|
|
$
|
0.14
|
|
|
$
|
(0.46)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
178,809,264
|
|
|
|
66,395,174
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations per common share - diluted
|
|
$
|
0.14
|
|
|
$
|
(0.46)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
180,783,535
|
|
|
|
66,395,174
|
|
|
|
|
|
|
|
|
Income (loss) on
discontinued operations per common share - basic
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
178,809,264
|
|
|
|
66,395,174
|
|
|
|
|
|
|
|
|
Income (loss) on
discontinued operations per common share - diluted
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
180,783,535
|
|
|
|
67,400,334
|
|
CLEANSPARK,
INC. RECONCILIATION OF ADJUSTED
EBITDA (Unaudited, in thousands)
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
$
|
25,909
|
|
|
$
|
(29,031)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on discontinued
operations
|
|
$
|
—
|
|
|
$
|
(1,457)
|
|
Depreciation and
amortization
|
|
|
29,847
|
|
|
|
19,329
|
|
Share-based
compensation expense
|
|
|
9,953
|
|
|
|
5,878
|
|
Change in fair value of
contingent consideration
|
|
|
—
|
|
|
|
(485)
|
|
Unrealized loss on
derivative security
|
|
|
1,243
|
|
|
|
1,271
|
|
Interest
income
|
|
|
(586)
|
|
|
|
(70)
|
|
Interest
expense
|
|
|
546
|
|
|
|
889
|
|
Loss on disposal
of assets
|
|
677
|
|
|
—
|
|
Income tax
expense
|
|
1,399
|
|
|
—
|
|
Other2
|
|
102
|
|
|
1,705
|
|
Total Adjusted
EBITDA
|
|
$
|
69,090
|
|
|
$
|
(1,971)
|
|
We have not excluded our net gain on fair value of
bitcoin ($36,041 in the
quarter ended December 31, 2023),
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 legal fees related to litigation &
settlement related expenses, 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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SOURCE CleanSpark, Inc.