Cleanspark Inc (CLSK) Reports 28% Revenue Growth Amidst Market Volatility in FY2023
FY2023 revenue increased by 28% to $168 million, with a net loss of $(137) million.
Adjusted EBITDA stands at $25 million, despite a 55% decrease from the previous year.
Cleanspark Inc (NASDAQ:CLSK) ends the fiscal year with $168 million in cash and bitcoin holdings.
Bitcoin production for the year reached a record 6,903, nearly doubling the previous year's output.
On November 30, 2023, Cleanspark Inc (NASDAQ:CLSK) released its 8-K filing, announcing its financial results for the fiscal year ended September 30, 2023. The company, known as America's Bitcoin Miner, has reported a substantial year-over-year revenue increase of 28%, taking its total revenue to $168 million. Despite the revenue growth, the company recognized a net loss of $(137) million, which is a 138% increase compared to the previous fiscal year's $(57.3) million. Adjusted EBITDA also saw a decline, decreasing by 55% to $25 million from $56.1 million in the prior year.
Financial Performance and Balance Sheet Highlights
Cleanspark Inc (NASDAQ:CLSK) has navigated a year marked by significant achievements and challenges. The company's bitcoin production surged by 84% over the previous year, contributing to the revenue increase. However, the volatility in bitcoin prices has impacted revenues and margins, with the company also incurring a $32 million non-cash expense related to accelerated depreciation of older mining equipment. Additionally, Cleanspark Inc (NASDAQ:CLSK) recognized $7 million of non-cash impairment expense related to bitcoin, with $6 million incurred in the fourth quarter.
The balance sheet reflects a strong financial position with total assets amounting to $762 million. Cash and bitcoin holdings combined stood at $85 million as of September 30, 2023, with a modest debt level of $16 million. By the end of November 2023, the company's liquidity had increased to approximately $168 million, with debt slightly reduced to $14.8 million. Total outstanding shares as of November 30, 2023, were 184.7 million.
Operational Success and Strategic Outlook
Zach Bradford, CEO of Cleanspark Inc (NASDAQ:CLSK), expressed pride in the company's operational achievements, including surpassing a total hashrate of 10 exahashes per second. CFO Gary Vecchiarelli highlighted the company's preparation for the upcoming bitcoin halving and its strong liquidity position, which will enable it to capitalize on future opportunities.
"This past fiscal year has been one of substantial growth and success for CleanSpark. We've not only met but exceeded many of our strategic aims and I'm proud to share these accomplishments with you, said Zach Bradford, CEO.
Our revenues increased by approximately $37 million, or 28% primarily driven by our growing bitcoin production, which increased 84% over the prior year," said Gary Vecchiarelli, CFO.
The company's focus on owning and operating its own infrastructure has been a cornerstone of its strategy, positioning it as a leader in the bitcoin mining industry. With the halving on the horizon, Cleanspark Inc (NASDAQ:CLSK) is poised to navigate the changing landscape with its efficient fleet and world-class operations.
Investor and Analyst Engagement
Cleanspark Inc (NASDAQ:CLSK) will hold its fiscal year 2023 earnings presentation and business update for investors and analysts on November 30, 2023. The webcast will be available on the company's website for at least 30 days, with a transcript to follow.
For a more detailed look at Cleanspark Inc (NASDAQ:CLSK)'s financial results, including the full balance sheets and statements of operations, investors and analysts are encouraged to view the complete 8-K filing.
As Cleanspark Inc (NASDAQ:CLSK) continues to grow and adapt in the dynamic cryptocurrency mining industry, the company remains committed to financial transparency and operational excellence. With a fortified balance sheet and a nearly doubled bitcoin production, Cleanspark Inc (NASDAQ:CLSK) is well-equipped to face the challenges and opportunities of the coming fiscal year.
Explore the complete 8-K earnings release (here) from Cleanspark Inc for further details.
This article first appeared on GuruFocus.
