Over the last six months the company has boosted computing power by 47 percent, with production increasing by about 50 percent during the same time frame. It stated that is should add another 93 petahashes per second to its mining capacity once the machines are delivered over the next six months or so, starting in August. On July 14, 2022, the company announced it had acquired 1,061 Whatsminer M30S machines that were already in the process of mining Bitcoin. The company expects the new machines to increase mining capacity by over 252 petahashes per second. Per its partnership with TMGcore, it includes 257 "immersion-cooled tanks designed to improve the performance of mining machines while substantially decreasing their failure rates over long-term use." In the middle of June 2022, CleanSpark announced it had "taken over an existing purchase contract for 1,800 Antminer S19 XP units." Growing its mining fleet and boosting Bitcoin production It sold 720 Bitcoin in the quarter to fund operations.Įnergy costs to mine one Bitcoin is about $4,500. Total liquidity at the end of the quarter stood at close to $90 million. It also held 420 in Bitcoin at the time, with a book value of a little over $17 million. As long as the price of Bitcoin remains subdued, that will be a challenge for the company.Īs for its balance sheet, the company had about $1.9 million in cash on hand at the end of March.
While the company has been finding some bargains in order to boost the size of its mining fleet, at the same time, once they're deployed, it has also increased the cost of energy. Until the price of Bitcoin sustainably reverses direction to the upside, this should be how the company performs going forward. For the most part I'm discounting that because of the rapid erosion associated with weak macro-economic conditions and crypto markets.The plunge in the price of Bitcoin from Q1 2022 to Q2 2022 showed itself in the drop in net loss from a positive $14.5 million in Q1 to a loss of $170,000 in Q2. Year-over-year EBITDA was solid, jumping from $1.9 million last year in the same reporting period, to $22.5 million in Q2 2022. EBITDA in Q2 dropped sequentially by $1.8 million, as a consequence of Bitcoin prices dropping and higher mining costs. The remaining $4.6 million came from its energy segment, which is, in my opinion, increasingly irrelevant to the company CleanSpark should sell that unit and use the capital for operations.Īdjusted EBITDA from the prior quarter reveals how the low price of Bitcoin has had an impact on the company's performance. Management attributed much of those gains as a result of investments in infrastructure and mining equipment. Mining revenues accounted for $37 million of the total. Revenue in Q2 jumped to $41.6 million, up more than 4x from the $8.1 million generated in Q2 of 2021. In this article we'll look at its most recent earnings numbers and what the future may hold for the company and its shareholders. That said, the company has been able to acquire more mining equipment at bargain prices, so if can survive the low-cost Bitcoin environment it's now operating in, when the price of Bitcoin sustainably rebounds, it could potentially leverage the boost in price from the increase in the number of mining machines it employs at that time.
It is undergoing the same struggles its peers are going through as a result of the continual downward pressure on the price of Bitcoin, and the FUD surrounding it. Suphansa Subruayying/iStock via Getty ImagesĬleanSpark ( NASDAQ: CLSK) is a relatively unknown Bitcoin ( BTC-USD) miner competing in the crypto sector.
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