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CleanSpark posts $29.3 million net losses and exits the energy business


www.theblock.co 09 August 2022 20:59, UTC
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Bitcoin miner CleanSpark posted a net loss of $29.3 million in the third quarter of its fiscal year, compared with a net loss $170,000 in the previous quarter.

The company brought in $31 million in revenue in the most recent quarter, down from $41.6 million in the previous quarter, it said in its earnings report on Tuesday.

"We are optimizing uptime and maximizing profits with our wholly owned locations," CEO Zach Bradford said. "We have also made efficient use of our capital by putting new miner purchases to work quickly. Despite macroeconomic headwinds, our results demonstrate the resiliency of our strategy, and we expect to grow in what is otherwise a bear market."

CleanSpark announced earlier today that it acquired a 36-megawatt mining facility in Georgia from vertically integrated bitcoin miner Waha Technologies for $16.2 million.

The new site will add 1.1 exahash per second (EH/s) to the company's hash rate (a 38% increase) is set to grown up to 86 megawatts in 2023.

CleanSpark is formally selling its energy business and is becoming "a pure play bitcoin miner," the company said. 

"Our decision to divest energy assets will allow us to focus our time, people, and resources on our core business," said CFO Gary A. Vecchiarelli.

In connection with the reclassification of its energy business as discontinued operations, CleanSpark recorded an impairment charge of $10.6 million.

CleanSpark announced the purchase of 2,861 mining rigs between June and July, leveraging favorable market conditions to secure a better deal. Last month it acquired 1,061 Whatsminer M30S machines, increasing its total hash rate by 93 petahashes per second (PH/s).

As of July 31, CleanSpark had 30,450 miners in its fleet with a total hash rate of 2.9 EH/s. It also had 519 BTC in its reserves by the end of the month.

This is a developing story and will be updated.

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