Cleanspark, Inc. ((CLSK)) has held its Q2 earnings call. Read on for the main highlights of the call.
CleanSpark’s latest earnings call revealed a positive sentiment overall, driven by strong revenue growth and improved operational efficiency. Despite challenges such as rising costs and a decline in Bitcoin spot price, the company maintains a robust liquidity position. CleanSpark’s infrastructure-first approach and non-dilutive funding strategies position it well for future growth. Although the net loss and increased costs present challenges, the outlook remains optimistic due to strategic growth initiatives and market adaptability.
Revenue and Gross Margin Growth
CleanSpark reported a significant increase in revenue, up 12% quarter over quarter and 62.5% year over year, reaching $181.7 million. The company’s gross profit also saw a notable rise, increasing almost 5% sequentially and more than 24% year over year, with a gross margin of 53%. This growth highlights CleanSpark’s ability to enhance profitability despite market challenges.
Bitcoin Production and Treasury
The company experienced a slight increase in Bitcoin production compared to the previous quarter. Average revenue per Bitcoin surged by 10.5% quarter over quarter and nearly 69% year over year. As of April 30th, CleanSpark’s Bitcoin treasury grew to over 12,100 coins, showcasing its strong position in the cryptocurrency market.
Liquidity and Non-Dilutive Funding
CleanSpark ended the quarter with $1.1 billion in liquidity and expanded its line of credit with Coinbase to $200 million. This strategic move supports growth without equity dilution, emphasizing the company’s disciplined approach to capital management.
Operational Efficiency and Market Share
The company improved its fleet efficiency from 18 joules per terahash in December to less than 17 joules per terahash by April. This improvement helps mitigate higher energy prices and rising network difficulty. CleanSpark holds about 5% market share in Bitcoin mining, underscoring its competitive position.
Strategic Growth and Infrastructure
CleanSpark is on track to reach 50 exahash by mid-2025 and has invested in infrastructure supporting almost 200 megawatts beyond that goal. The company has secured infrastructure to support growth beyond 60 exahash, demonstrating its commitment to long-term expansion.
Net Loss and Bitcoin Spot Price Decline
Despite strong operational performance, CleanSpark reported a net loss of $138.8 million due to a quarter-end decline in Bitcoin spot price. This loss highlights the volatility and challenges associated with the cryptocurrency market.
Rising Costs and Mining Difficulty
The marginal cost per coin rose to $42,600, a 26% increase over the first quarter. This rise was driven by increased mining difficulty and higher power prices, presenting a challenge for CleanSpark’s cost management.
Forward-Looking Guidance
Looking ahead, CleanSpark anticipates continued financial growth and operational resilience. The company plans to reach 50 exahash by mid-2025, with potential expansion to 65 exahash. Strategic infrastructure investments and a focus on Bitcoin as a core long-term asset support these ambitious goals.
In summary, CleanSpark’s earnings call reflects a positive sentiment, with strong revenue growth and improved operational efficiency. Despite challenges like rising costs and a decline in Bitcoin spot price, the company remains well-positioned for future growth. Key takeaways include CleanSpark’s strategic infrastructure investments, disciplined capital management, and commitment to expanding its Bitcoin production capabilities.