Release Date: December 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cleanspark Inc (CLSK, Financial) reported a significant increase in revenue, reaching $378.9 million, a 125% growth from the previous fiscal year.
- The company achieved an impressive adjusted EBITDA of $245.8 million, marking an 882% increase over the prior year.
- Cleanspark Inc (CLSK) has successfully expanded its operational power capacity to over 726 megawatts, supporting a substantial increase in hash rate.
- The company has secured price certainty for ASIC miners, ensuring stability in future hardware costs.
- Cleanspark Inc (CLSK) maintains one of the lowest all-in power costs in the industry, enhancing its competitive position.
Negative Points
- Cleanspark Inc (CLSK) reported a GAAP net loss of approximately $145.8 million for the fiscal year 2024.
- The company faced a non-cash impairment expense of $197 million, impacting its financial results.
- Hurricane Helene caused operational disruptions, leading to a revenue loss of approximately $1 million per day during the outage.
- The cost to mine Bitcoin increased significantly in Q4, reaching approximately $36,250 per Bitcoin.
- There is potential tariff risk on ASIC miners, which could impact future hardware costs.
Q & A Highlights
Q: Why do you believe miners like CleanSpark have lagged behind Bitcoin this year, despite historically outperforming it?
A: Zachary Bradford, CEO, explained that over a two-year period, miners, including CleanSpark, have continued to outperform Bitcoin. He views the current situation as a temporary plateau before a potential upswing in miner value as the market better understands their capabilities.
Q: How is CleanSpark approaching the ASIC market, considering your goal of reaching 50 Exahash by next year?
A: Zachary Bradford, CEO, stated that CleanSpark has already locked in price certainty for ASICs, with options to purchase additional units at fixed prices. This strategy provides flexibility and ensures they can make capital decisions based on market conditions while maintaining best-in-class pricing.
Q: Can you elaborate on the digital asset management initiative and potential yield generation strategies?
A: Gary Vecchiarelli, CFO, mentioned that CleanSpark is adopting a cautious approach, focusing on capital preservation. They are exploring strategies like covered calls, Bitcoin lending, and providing liquidity to ETFs, with more details to be shared as the fiscal year progresses.
Q: What industry trends do you expect to drive mining in 2025, and how has the recent Presidential election impacted your outlook?
A: Zachary Bradford, CEO, anticipates positive changes in capital markets and regulatory environments, leading to more opportunities. He emphasized the importance of scale for miners, predicting that larger miners will continue to access the best capital and opportunities.
Q: How do you view the build versus buy decision for infrastructure, and what are your thoughts on buying Bitcoin outright?
A: Zachary Bradford, CEO, explained that CleanSpark focuses on building hardened immersion-cooled infrastructure in rural areas. While they are open to buying Bitcoin for strategic reasons, they believe investing in facilities to produce Bitcoin offers better long-term returns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
