CleanSpark, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Bitcoin Production: CleanSpark mined 964 Bitcoins in Q3 FY2022 — 7% higher than the previous quarter and a 400% increase year-over-year.
  • Hash Rate Growth: Increased from 2.3 EH/s to 2.9 EH/s during Q3 (26% growth). Compared to ~1 EH/s same time last year.
  • Revenue and Profit: Revenues for Q3 were nearly $31 million, up 244% YoY (from $9M), but down 17% from Q2 due to lower Bitcoin prices. Gross profit tripled YoY to ~$21 million but declined QoQ by $8M.
  • Adjusted EBITDA: $15M for Q3, representing a 49% margin. While EBITDA dropped ~$6M QoQ, margins remain strong due to low-cost operations.
  • Net Loss: $29 million net loss, primarily driven by non-cash impairments of Bitcoin assets and discontinued Energy business assets.
  • Energy Business Exit: Formal decision made to sell all Energy business assets (e.g., mPulse, GridFabric). Segment represented <10% of revenue but significant cash burn. Reallocated focus entirely on mining operations.
  • New Facility Acquired: CleanSpark acquired a 36 MW facility in Washington, GA for $25.1M (inclusive of power contracts, land, and 3,400 S19 miners). Adds immediate 340 PH/s with room to expand to total 2.65 EH/s (including future 50 MW development).

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Operator: Good afternoon. My name is David, and I will be your conference operator today. At this time, I’d like to welcome everyone to the CleanSpark Fiscal Year 2022 Q3 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. [Operator Instructions] At this time, I’d like to turn the floor over to Isaac Holyoak, Chief Communications Officer. Isaac Holyoak: Thanks, David. And thank you for joining us today for CleanSpark’s third quarter fiscal year 2022 financial results call. Our press release was issued about 30 minutes ago and is available on our website at www.cleanspark.com/investors. Today’s call is also being webcast, and a replay and transcript will be available on our website. I am here with Zach Bradford, our Chief Executive Officer; and Gary Vecchiarelli, our Chief Financial Officer. Keep in mind that some of the statements we make today are forward-looking and based on our best view of the world and our businesses as we see them today. As described in our SEC filings and on our website, those elements may change as the world changes. We will also discuss certain non-GAAP financial measures about our performance during today’s call. You can find the reconciliation of GAAP financial measures in our press release, which is available on our website. Now it is my pleasure to turn the call over to Zach. Zach Bradford: Thanks, Isaac. Good afternoon and thank you for joinin

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