SALT LAKE CITY, Dec. 31, 2020 /PRNewswire/ -- CleanSpark, Inc.
(Nasdaq: CLSK), ("CleanSpark, or the Company"), an advanced
software and controls technology solutions company focused on
solving modern energy challenges, is pleased to update its
shareholders and further comment on the Company's financial results
presented in its most recent Form 10-K. The Company recommends that
readers also review the previously filed 10-K in its entirety,
which is available free of charge to all interested parties on its
website or on www.sec.gov.
CleanSpark Looks Toward 300% Revenue Growth
Dear Fellow Shareholders,
The COVID-19 pandemic presented many hardships throughout the
year that have touched us all in some way or another. With the
recent progress being made by the medical community and a growing
optimism surrounding the economy, we are increasingly confident
about the status of our company and the promise of the future. As
we discussed in our comments following the report of our
third-quarter results, we consider the Company extremely fortunate
to have continued to thrive during the global challenges of 2020.
The professionalism demonstrated by the CleanSpark team to readily
shift to a 'work-at-home' environment in a seamless transition was
certainly the foundation for our continued successes. We found
ourselves in the midst of commissioning some of our first
international microgrid deployments just as countries around the
world closed their borders to foreign travel. In response, our
software team was able to successfully and rapidly develop a remote
deployment and commissioning strategy that enables our partners to
commission our systems remotely, including those located outside of
the country. These upgrades, while mandatory in the face of
COVID-19, will almost certainly improve our efficiencies and
significantly reduce costs in future remote deployments as we
continue to execute on our 'one to many' strategy to develop far
reaching partnerships to enhance distribution.
Prior to CleanSpark completing a successful uplist to the Nasdaq
stock market last January, the Company's management team forecast a
revenue increase exceeding 100%. Not only were we able to achieve
our projected numbers, but the Company also completed a series of
strategic acquisitions that should prove to be tremendously
valuable to all shareholders in the coming years. In addition to
increasing our gross revenues, we've focused on streamlining all
aspects of our operations to reach our goal of profitability within
the coming year and paved this road with a series of carefully
planned corporate transactions.
We're proud of the efforts of our amazing stakeholders across
the entire enterprise for successfully achieving a number of
significant wins for the Company, including:
- During our 2020 fiscal year, we completed successful
acquisitions of GridFabric and p2klabs. Both acquired companies are
cashflow-positive and provide us with entirely new verticals for
growth. Subsequent policy shifts (FERC2222) should further
accelerate growth in the GridFabric segment.
- The September ruling by the Federal Energy Regulation
Commission, FERC 2222, is a massive policy shift in favor of the
distributed energy market in particular and a significant win for
CleanSpark. It should open up additional value streams for
microgrid developers and owners to fully participate in wholesale
markets. These opportunities are expected to dramatically improve
microgrid economics and stimulate future deployments. Microgrid
developers of all sizes should now be able to leverage CleanSpark's
robust portfolio of technologies to tap into these opportunities
and offer significant value for their customers.
- CleanSpark successfully commissioned its first two microgrids
within Costa Rica. The commercial
customers utilize mPulse to manage the day-to-day performance of
the power system, maximizing the energy savings while providing
certainty of operations through the Tesla battery energy
storage systems provided on site.
- In early December 2020, we
acquired ATL Data Centers in an 'all-stock' transaction. By
leveraging our proprietary technologies, the Company expects to
increase Bitcoin production while lowering total energy costs,
thereby maximizing overall profitability. The anticipation of
producing Bitcoins at what we believe will be potentially the
lowest total energy cost in America is expected to be a substantial
opportunity to market our proprietary energy solutions to other
energy intensive operations throughout the world.
- Since the acquisition, Bitcoin has traded as high as
$28,500 per coin. We've also
ordered an additional 1,500 ASICS miners since the closing of the
ATL transaction, with plans to fully deploy this order of miners in
January 2021. Management believes
that recent moves by companies such as Square, PayPal,
MicroStrategy and others have furthered the validation of Bitcoin,
and expects that energy efficiency will soon become a priority. The
addition of new miners, paired with the recent market performance
of Bitcoin prompted the company to raise our revenue guidance to
$30M for fiscal 2021, 300% of what we
successfully delivered in 2020.
- The Company further improved its corporate governance and
oversight by appointing two new independent board members and
creating a fully independent audit and compensation committee.
CleanSpark enhanced its reliable, talented, and goal-oriented
management team, including the promotion of Zach Bradford as its Chief Executive Officer,
the appointments of Lori Love, as
Chief Financial Officer, Amer
Tadayon as Chief Revenue Officer, and Marty Weishaar as Vice President of Marketing.
The Company's co-founder and former CEO, Matthew Schultz assumed new duties as the
Executive Chairman. Our team has now grown to 62 full-time staff
members as of December 29, 2020.
- Along with ReJoule, Inc., we were jointly awarded a
$2.9 Million grant from the
California Energy Commission with support from the Ford Motor
Company for second-life EV battery deployments. The first
joint deployment is expected to occur in the next quarter.
- The software and product team launched new features for our two
product lines
-
- In mVSO, we began the year with an expanded equipment library
for energy storage that has only grown over the last 9 months and
continued our improvements by releasing a revamped user experience
and additional functionality around modeling different rate
structures and demand response programs.
- mPulse published four separate feature-set releases to
customers as well as an expanded web portal to enable self-service
of user and alert management, pre-configured performance reports,
and custom data exports.
- We're looking forward to accelerating our software capabilities
and features across the CleanSpark family of products, including
GridFabric. We believe the growth will be due in part to the
increase in our software team that has nearly doubled in size
within the last two months.
- CleanSpark commissioned multiple microgrids controlled by our
mPulse hybrid-cloud control software in our fiscal 2020 year. These
microgrids span the industrial, commercial, and indoor agriculture
industries. mPulse is already optimizing renewable energy usage and
providing energy cost savings at each site. In addition, we shipped
over 70 Switchgear units to commercial and industrial customers
ensuring resiliency and seamless power availability. These units
now support US Embassies, critical water treatment facilities and a
number of locations of the nation's largest retailer.
- In October, the Company closed an underwritten public offering
of its common stock and received gross proceeds of $40 million before deducting underwriting
expenses and fees. CleanSpark intends to continue to use the net
proceeds from the offering to support its future growth through
increased sales and marketing, product development and software
enhancements/ improvements, and additional strategic mergers and
acquisitions, along with general corporate purposes.
Outlook
The Company expects the somewhat cyclical nature of our business
to continue. As an example, approximately 10% of our fiscal 2020
revenue was realized in the quarter ending December 31, 2019. We anticipate this trend
will continue in fiscal 2021 and we forecast that our second and
third fiscal quarters will again be our strongest. We expect to
generate $20 million in revenue
related to our current business segments and we expect the recent
acquisition of ATL Data Center to contribute a minimum of
$10 million in additional
Bitcoin-based (BTC-USD) revenues for 2021. We are working
diligently to expand the data center capacity allowing us to
further increase these initial estimates, but the Company's
guidance will remain somewhat conservative until the expansion has
been completed and we have sufficient data to forecast a firm
outlook. Finally, as we have only recently begun to integrate ATL
into our operations, we have not yet measured the potential
additional value expected to be derived from the demonstration of
our energy technologies within the data center for additional
microgrid deployment and sales opportunities.
We are thankful for the dedicated support from all of our
stakeholders. We continue to put our efforts towards increasing
shareholder value, achieving profitability, and improving our
margin profile through increased software and service revenues. We
are aggressively seeking new acquisition opportunities for 2021,
along with identifying partnerships and product enhancements that
will expedite our growth as a company. Finally, our previously
discussed data center and Bitcoin mining expansion has begun as of
this writing, while we continue to seek additional growth
opportunities.
We sincerely, thank you for your continued support of
CleanSpark.
With warmest regards, and wishes for a very healthy, happy and
prosperous 2021, your fellow shareholders,
Zach and Matt
Zachary Bradford, CEO
and
S. Matthew Schultz, Executive
Chairman
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 visiting the Company's website at
https://ir.cleanspark.com/
About CleanSpark:
CleanSpark, Inc., a Nevada
corporation, is in the business of providing advanced software and
controls technology solutions to solve modern energy
challenges. We have a suite of software solutions that
provide end-to-end microgrid energy modeling, energy market
communications, and energy management solutions. Our
offerings consist of intelligent energy monitoring and controls,
intelligent microgrid design software, middleware communications
protocols for the energy industry, energy system engineering, and
software consulting services.
Through its wholly owned subsidiary ATL Data Centers LLC,
CleanSpark owns and operates a data center that provides customers
with traditional on-site and cloud-based data center services. The
Company also owns and operates a fleet of over 3,400 ASIC
(application-specific integrated circuit) Bitcoin miners producing
over 200 PH/s in mining capacity. Capacity is expected to increase
to over 5,900 ASIC and 300 PH/s in mining capacity by early 2021.
CleanSpark plans to apply its technologies with a goal of mining
bitcoins at the lowest energy prices in the United States. For more information,
visit
Forward-Looking Statements:
CleanSpark cautions you that statements in this press release
that are not a description of historical facts are forward-looking
statements. These statements are based on CleanSpark's current
beliefs and expectations. The inclusion of forward-looking
statements should not be regarded as a representation by CleanSpark
that any of our plans will be achieved. Actual results may differ
from those set forth in this press release due to the risk and
uncertainties inherent in our business, including, without
limitation: the successful integration of ATL into CleanSpark, the
price of Bitcoin (BTC), the fitness of our energy software and
solutions for this particular application or market, the
expectations of future revenue growth may not be realized, ongoing
demand for our 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 our prior press
releases and in our filings with the Securities and Exchange
Commission (SEC), including under the heading "Risk Factors" in our
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 to reflect events or circumstances after the date hereof.
All forward-looking statements are qualified in their entirety by
this cautionary statement, which is made under the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Contact - Investor Relations:
CleanSpark Inc.
Investor Relations
(801)-244-4405
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SOURCE CleanSpark, Inc.