CleanSpark Raises Year-End Hashrate Guidance, Sets 2023 Outlook

The miner suffered a $29.3 million loss for the fiscal quarter, partly driven by the previously disclosed decision to sell its energy assets.

AccessTimeIconAug 9, 2022 at 9:10 p.m. UTC
Updated Aug 11, 2022 at 10:04 a.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CleanSpark (CLSK) – reporting results for its fiscal third quarter – said it will sell its energy business assets in order to focus completely on bitcoin (BTC) mining.

CleanSpark got its start in 2014 providing energy products to homes and businesses. It entered bitcoin mining in 2020, according to the company website. Today, more than 90% of revenue comes from bitcoin mining, CEO Zach Bradford said during Tuesday's earnings conference call.

The firm reported a $29.3 million net loss for the third quarter of its fiscal year, in part driven by the reclassification of the energy business to be discontinued, which resulted in a $10.6 million impairment charge.

The miner’s adjusted EBITDA was $15.2 million for the quarter, down from $22.5 million in the previous quarter.

Revenue of $31 million missed analyst estimates for $34.5 million, according to FactSet data. Adjusted EBITDA of $15.2 million was down from $22.5 million the previous quarter.

The company upped hashrate guidance for year-end 2022 to 5 exahash/second (EH/s), and issued guidance for the end of 2023, when it expects to reach 22.4 EH/s.

CleanSpark differs from some other bitcoin miners as it has been a consistent seller of mined bitcoin to raise cash. It thus entered this current bear market with less debt and has been in acquisition mode. The latest deal was announced earlier Tuesday – the purchase for $25.1 million of an active 36 megawatt (MW) bitcoin mine in the U.S. state of Georgia, as well as 3,400 mining rigs currently running at the site.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC