CleanSpark doubles up fiscal 1Q revenue, continues to build bitcoin mining operation

CleanSpark Inc (NASDAQ:CLSK) a developer of clean energy grid technology, posted fiscal first-quarter results that saw revenue more than double year-over-year, thanks to an expanded sales team and a newfound passion for bitcoin mining. 

The company reported revenue of nearly $2.3 million, well above the $920,000 it brought in during the same period a year earlier. Its adjusted loss narrowed to $591,975, $0.03 per share, year-over-year from more than $1.7 million, $0.37 per share.

Breaking it down, $1.2 million or 54%, of CleanSpark’s revenue, came from the company’s energy segment, its digital agency segment (p2klabs) contributed $300,000 or 13%, and its bitcoin mining operation (ATL Data Center) accounted for $730,000 (32%).

“This was another record-breaking quarter for CleanSpark,” CEO Zach Bradford said in a statement. “The company expected the somewhat cyclical nature of our business to continue, specifically related to our energy business segments. In prior years, we have recognized approximately 10% of our total annual revenues in the quarter ending December 31.

READ: CleanSpark updates on Bitcoin mining operations, expects to further increase its Petahash rate in February, beyond prior projections

“This trend has continued to be reflected in the results of our most recent fiscal quarter,” he added. “These trends are largely due to the annual holiday slowdown and winter weather as energy systems are more easily deployed in warm weather. We continue to expect to see the strongest revenues related to our energy segments in our third and fourth fiscal quarters.  

In terms of working capital, the company had $25.6 million as of December 31, an increase of $22.5 million quarter-over-quarter, and roughly even year-over-year.

Looking ahead, CleanSpark expects $30 million in revenue for its fiscal year ending September 30. The company’s current backlog stands at $7.3 million, up from $800,000 at the end of the quarter, which it attributes to an expanded sales team.

Last quarter was also the company’s first in the bitcoin mining space after acquiring ATL Data Center. CleanSpark had contracted with the local municipality to bring 30 megawatts (MW) of additional power to a property adjacent to ATL to support additional mining operations, the company said, bringing the total power available up to 50MW.

“This is especially meaningful, considering our bitcoin mining revenues consisted of only 21 full days of mining in December,” Bradford said. “We expect to reach more than 315 PH/s [petahashes per second] within the month of February. We also expect to have the initial power capacity increase completed over the next two quarters and anticipate bringing additional mining equipment online in parallel with the available power. We believe the improvements will add an additional 800 to 880 PH/s of processing capacity … [and] bring the total capacity under CleanSpark’s subsidiaries to between 1.0 to 1.3 EH/s by mid-summer.”

That would mean production of roughly 6-9 bitcoins per day. At the cryptocurrency’s current price of more than $47,000, that level of production would result in $115 million to $150 million per year in bitcoin mining revenue. 

Salt Lake City-based CleanSpark provides advanced software and controls technology solutions, including a suite of software solutions that provide end-to-end microgrid energy modeling, energy market communications, and energy management solutions.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors