Cleanspark Inc (CLSK) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Growth ...

In This Article:

  • Revenue: $162.3 million, a 120% increase compared to the same period last year.

  • Net Income: $246.8 million, or $0.85 per basic share.

  • Adjusted EBITDA: $321.6 million.

  • Bitcoin Treasury: 9,952 Bitcoins at the end of the quarter, increasing to 10,556 by the end of the following month.

  • Average Bitcoin Price: Exceeded $83,000, peaking above $108,000.

  • Marginal Cost per Bitcoin: Approximately $34,000, a $2,000 improvement from the prior quarter.

  • Fleet Efficiency: Improved to 16.15 joules per Terahash as of January 31.

  • Gross Profit Margin: 57% for the quarter.

  • Cost of Power: 4.09 cents per kilowatt-hour.

  • Total Assets: Almost $2.8 billion, with nearly half in liquid form (cash and Bitcoin).

  • Convertible Bond: Secured $650 million, with a 0% coupon and 100% conversion premium.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cleanspark Inc (NASDAQ:CLSK) achieved a significant revenue growth of 120% year-over-year, reaching $162.3 million for the first quarter.

  • The company secured a $650 million convertible bond, fully funding its growth strategy to reach 50 exahash by mid-2025 without relying on equity.

  • Cleanspark Inc (NASDAQ:CLSK) reported a net income of $246.8 million, demonstrating strong financial performance.

  • The company holds one of the largest self-mined Bitcoin treasuries in the industry, with over 10,000 Bitcoins mined in the U.S.

  • Cleanspark Inc (NASDAQ:CLSK) has improved its fleet efficiency, reducing the marginal cost per Bitcoin to approximately $34,000, enhancing profitability.

Negative Points

  • The company's uptime slightly decreased to 94% due to factors like a hurricane and moving miners, impacting operational consistency.

  • Cleanspark Inc (NASDAQ:CLSK) faces increased power costs, with the cost per kilowatt hour rising to $0.09, slightly higher than previous quarters.

  • The company is cautious about leveraging its balance sheet further, indicating potential limitations in accessing additional non-dilutive capital.

  • There is uncertainty in the Bitcoin rig market, with prices potentially 37% higher than Cleanspark Inc (NASDAQ:CLSK)'s fixed price options, affecting future growth costs.

  • Cleanspark Inc (NASDAQ:CLSK) acknowledges the complexity and challenges of repurposing Bitcoin mining facilities for high-performance computing, which could impact strategic diversification.

Q & A Highlights

Q: Can you provide more details on your Bitcoin Treasury Management strategy and how you plan to utilize your Bitcoin reserves? A: Gary Vecchiarelli, CFO, explained that they are currently evaluating options through requests for proposals from counterparties. They plan to adopt a cautious approach, gradually implementing strategies without leveraging 100% of their Bitcoin holdings. More details will be shared in future quarters.