CleanSpark to Divest From Energy Holdings in Order to Focus on Bitcoin Mining
Bitcoin miner CleanSpark (CLSK) – reporting results for its fiscal third quarter – said it will sell its energy business assets in order to focus completely on bitcoin mining.
CleanSpark got its start in 2014 providing energy solutions to homes and businesses, and 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 the fiscal year, in-part driven by the reclassification of the energy business to 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's been a consistent seller of mined bitcoin to raise cash. It thus entered this current bear market with less debt, and in fact 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 Georgia, as well as 3,400 mining rigs currently running at the site.
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