Cleanspark, Inc. ((CLSK)) has held its Q4 earnings call. Read on for the main highlights of the call.
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CleanSpark, Inc. recently held its earnings call, revealing a strong financial performance and strategic growth in AI and Bitcoin mining. Despite facing minor operational challenges and a slight decrease in gross margin, the overall sentiment was positive, underscoring the company’s robust position in the market.
Record Revenue and Hash Rate Growth
CleanSpark reported record revenues of $766 million for the fiscal year 2025, with a gross margin of 55%. The company achieved an operational hash rate of 50 exahash per second, which is fully U.S.-based, marking significant growth in its Bitcoin mining capabilities.
Bitcoin Treasury Growth
The company’s Bitcoin treasury saw a substantial increase of nearly 62%, reaching over 13,000 Bitcoins. This growth was achieved entirely from its own hash rate, highlighting CleanSpark’s effective capital stewardship and strategic focus on enhancing its Bitcoin holdings.
AI Data Center Development
In a strategic move to diversify its operations, CleanSpark secured a 285-megawatt site in Texas, aiming to build an AI factory. The company has multiple sites ready for AI and high-performance computing (HPC) deployments, indicating a forward-thinking approach to technology integration.
Innovative Financial Strategies
CleanSpark completed a $1.15 billion upsized 0% convertible note with a 27.5% conversion premium and a six-year term. Additionally, a $460 million stock buyback was executed, reducing outstanding shares by over 10%, showcasing the company’s innovative approach to financial management.
Strong EBITDA and Net Income
The company achieved an adjusted EBITDA of over $800 million and a positive net income of approximately $365 million. This financial strength was driven by increased margins and the fair value of Bitcoin, reflecting CleanSpark’s solid financial health.
Gross Margin Slight Decrease
CleanSpark experienced a 1% decrease in gross margin year-over-year, attributed to the Bitcoin halving that reduced block rewards by 50%. Despite this, the company maintained a healthy gross margin of 55%.
Longer Deployment Timeline
The deployment of 19,000 S21X XP immersion units is delayed, with completion now expected by calendar year 2026. This extended timeline indicates challenges in meeting initial deployment schedules.
Challenges in Power Expansion
CleanSpark faced some challenges in securing and expanding power and land portfolios for new site developments. These challenges highlight the complexities involved in scaling operations in a timely manner.
Forward-Looking Guidance
Looking ahead, CleanSpark outlined several strategic initiatives, including expanding its infrastructure to include nearly 300 megawatts in Texas by 2027. The company aims to evolve into a diversified compute platform, leveraging its infrastructure for AI workloads while maintaining leadership in Bitcoin mining. These plans underscore CleanSpark’s commitment to growth and innovation.
In summary, CleanSpark’s earnings call highlighted a strong financial performance and strategic initiatives aimed at growth in AI and Bitcoin mining. Despite minor operational challenges, the company remains well-positioned for future success, with a focus on expanding its infrastructure and diversifying its operations.