Revenue grows 28% year over year; annual
bitcoin production nearly doubles to 6,903
FY2023 Revenue of $168
million, net loss of $(137)
million and Adjusted EBITDA of $25
million
Reports current cash and bitcoin
holdings of approximately $168
million
LAS
VEGAS, Nov. 30, 2023 /PRNewswire/
-- CleanSpark, Inc. (Nasdaq: CLSK) (the "Company"), America's
Bitcoin Miner™, today reported financial results for
its fiscal year ended September 30,
2023.
"This past fiscal year has been one of
substantial growth and success for CleanSpark," said Zach Bradford, CEO.
"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. "We posted revenue of over $168
million, a significant increase over the last fiscal year.
We expect to continue this trajectory and are optimistic about
revenue growth next year, even as we prepare for the halving.
Operationally, our hashrate growth year-over-year has been
exceptional, highlighting our commitment to not just growing but
also scaling efficiently. We achieved a remarkable milestone this
year by surpassing a total hashrate of 10 exahashes per second, and
that hashrate is among the most efficient in the industry."
Bradford continued, "I'm also proud to note that
we've kept pace with the Bitcoin network's soaring
hashrate; the results of our efforts were a record 6,903
bitcoin mined for the fiscal year, almost doubling
what we mined last year. Topping it off, we are entering the new
year with the strongest balance sheet in our history. We believe we
are the best bitcoin mining operators in the industry
and are well-served by our strategy of owning and operating our own
infrastructure."
"It's been a year of significant achievements, and our financial
position reflects this," said Gary
Vecchiarelli, CFO. "Our 2023 fiscal year has helped to
set the stage in preparation for the halving. Most
importantly, we have shored up the balance sheet, as we have almost
$170 million in liquidity as of
today. With our efficient fleet, world class operations and
strong liquidity, we are positioned well for the future and will
look to take advantage of opportunities the halving may
present."
Vecchiarelli continued, "Our revenues increased by
approximately $37 million, or 28%
primarily driven by our growing bitcoin production,
which increased 84% over the prior year. However,
bitcoin price saw much volatility during the year
affecting our revenues and margins accordingly. We also
incurred an additional $32 million of
non-cash expense related to accelerated depreciation. This
acceleration was due to the reduction of estimated useful lives on
our older and less efficient miners that we have pulled from
service as part of our fleet upgrade or do not intend on using past
the halving. Under current accounting rules, we recognized
$7 million of non-cash impairment
expense related to our bitcoin, $6 million of which was incurred in the fourth
quarter, a byproduct of our bitcoin balance increasing
over 300% between the quarters."
Financial Highlights of Fiscal Year 2023
Financial Results for the Fiscal Year Ended September 30, 2023
- Revenues for the year grew to $168.4
million, an increase of $36.9
million, or 28%, from $131.5
million in the prior year.
- The Company recognized a net loss for the year of $(136.6) million, an increase of 138% compared to
$(57.3) million in the prior
year.
- Adjusted EBITDA1 decreased to $25.0 million, a decrease of $31.1 million or (55)% from $56.1 million in the prior year.
Balance Sheet Highlights as of September 30, 2023
Assets
- Cash: $29 million
- Bitcoin: $56
million
- Total current assets: $102
million
- Total mining assets (including prepaid deposits & deployed
miners, net of accumulated depreciation): $485 million
- Total assets: $762 million
Liabilities and Stockholders' Equity
- Current liabilities: $74
million
- Total liabilities: $84
million
- Total stockholders' equity: $677
million
The Company had combined cash and bitcoin holdings
of $85 million and $16 million of debt as of September 30, 2023. Total outstanding shares, as
of September 30, 2023, were 160.2
million.
As of November 30, 2023, the
Company has combined cash and bitcoin holdings of
approximately $168 million and
$14.8 million of debt. Total
outstanding shares, as of November 30,
2023, are 184.7 million.
1 See "Non-GAAP Measure" and the related
reconciliation below.1 See "Non-GAAP Measure" and the
related reconciliation below.
Investor Conference Call and Webcast
The Company will hold its fiscal year 2023 earnings presentation
and business update for investors and analysts today, November 30, 2023, at 1:30p.m. PT / 4:30p.m.
ET.
Webcast URL: https://investors.cleanspark.com
The webcast will be accessible for at least 30 days on the
Company's website and a transcript of the call will be available on
the Company's website following the call.
About CleanSpark
CleanSpark (Nasdaq: CLSK) is America's Bitcoin
Miner™. We own and operate data centers that primarily run on
low-carbon power. Our infrastructure responsibly supports
Bitcoin, the world's most important digital commodity
and an essential tool for financial independence and inclusion. We
cultivate trust and transparency among our employees and the
communities we operate in. Visit our website at
www.cleanspark.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. In this press release, forward-looking statements include,
but may not be limited to, statements regarding the Company's
expectations, beliefs, plans, intentions, and strategies. In some
cases, you can identify forward-looking statements by terms such as
"may," "will," "should," "expects," "plans," "anticipates,"
"could," "intends," "targets," "projects," "contemplates,"
"believes," "estimates," "forecasts," "predicts," "potential" or
"continue" or the negative of these terms or other similar
expressions. The forward-looking statements are subject to a
variety of known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to:
appreciation in the value of bitcoin; the risk that
the electrical power available to our facilities does not increase
as expected; the success of its digital currency mining activities;
the volatile and unpredictable cycles in the emerging and evolving
industries in which we operate; increasing difficulty rates for
bitcoin mining; bitcoin halving; new or
additional governmental regulation; the anticipated delivery dates
of new miners; the ability to successfully deploy new miners; the
dependency on utility rate structures and government incentive
programs; dependency on third-party power providers for expansion
efforts; the expectations of future revenue growth may not be
realized; and other risks described in the Company's prior press
releases and in its filings with the Securities and Exchange
Commission (SEC), including under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 2023, and any
subsequent filings with the SEC. Forward-looking statements
contained herein are made only as to the date of this press
release, and we assume no obligation to update or revise any
forward-looking statements as a result of any new information,
changed circumstances or future events or otherwise, except as
required by applicable law.
Non-GAAP Measure
The Company presents adjusted EBITDA, which is not a measurement
of financial performance under generally accepted accounting
principles in the United States
("GAAP"). The Company's non-GAAP "Adjusted EBITDA" excludes (i)
impacts of interest, taxes, and depreciation; (ii) the Company's
share-based compensation expense, unrealized gains/losses on
securities, and, changes in the fair value of contingent
consideration with respect to previously completed
acquisitions, all of which are non-cash items that the
Company believes are not reflective of the Company's general
business performance, and for which the accounting requires
management judgment, and the resulting expenses could vary
significantly in comparison to other companies; (iii) non-cash
impairment losses related to long-lived assets (including
goodwill); (iv) realized gains and losses on sales of equity
securities, the amounts of which are directly related to the
unrealized gains and losses that are also excluded; (v) legal fees
related to litigation and various transactions, which fees
management does not believe are reflective of the Company's ongoing
operating activities; (vi) gains and losses on disposal of assets,
the majority of which are related to obsolete or unrepairable
machines that are no longer deployed; (vii) gains and losses
related to discontinued operations that would not be applicable to
the Company's future business activities; and (viii) severance
expenses. The Company previously excluded non-cash impairment
losses related to digital assets and realized gains and losses on
sales of bitcoin from our calculation of adjusted
EBITDA, but has determined such items are part of the Company's
normal ongoing operations and will no longer be excluding them from
our calculation of adjusted EBITDA.
Management believes that providing this non-GAAP financial
measure that excludes these items allows for meaningful comparisons
between the Company's core business operating results and those of
other companies, and provides the Company with an important tool
for financial and operational decision making and for evaluating
its own core business operating results over different periods of
time. In addition to management's internal use of non-GAAP adjusted
EBITDA, management believes that adjusted EBITDA is also useful to
investors and analysts in comparing the Company's performance
across reporting periods on a consistent basis. Management
believes the foregoing to be the case even though some of the
excluded items involve cash outlays and some of them recur on a
regular basis (although management does not believe any of such
items are normal operating expenses necessary to generate our
bitcoin related revenues). For example, the
Company expects that share-based compensation expense, which is
excluded from adjusted EBITDA, will continue to be a significant
recurring expense over the coming years and is an important part of
the compensation provided to certain employees, officers, and
directors. Additionally, management does not consider any of the
excluded items to be expenses necessary to generate the Company's
bitcoin related revenue.
The Company's adjusted EBITDA measure may not be directly
comparable to similar measures provided by other companies in
our industry, as other companies in the Company's industry may
calculate non-GAAP financial results differently. The Company's
adjusted EBITDA is not a measurement of financial performance under
GAAP and should not be considered as an alternative to operating
(loss) income or any other measure of performance derived in
accordance with GAAP. Although management utilizes internally and
presents adjusted EBITDA, the Company only utilizes that measure
supplementally and does not consider it to be a substitute for, or
superior to, the information provided by GAAP financial
results.
Accordingly, adjusted EBITDA is not meant to be considered in
isolation of, and should be read in conjunction with, the
information contained in the Company's Consolidated Financial
Statements, which have been prepared in accordance with GAAP.
CLEANSPARK,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands,
except par value and share amounts)
|
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
29,215
|
|
|
$
|
20,463
|
|
Accounts receivable,
net
|
|
|
5
|
|
|
|
27
|
|
Inventory
|
|
|
809
|
|
|
|
216
|
|
Prepaid expense and
other current assets
|
|
|
12,034
|
|
|
|
7,931
|
|
Bitcoin
|
|
|
56,241
|
|
|
|
11,147
|
|
Derivative investment
asset
|
|
|
2,697
|
|
|
|
2,956
|
|
Investment in debt
security, AFS, at fair value
|
|
|
726
|
|
|
|
610
|
|
Current assets held
for sale
|
|
|
445
|
|
|
|
7,426
|
|
Total current
assets
|
|
$
|
102,172
|
|
|
$
|
50,776
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
$
|
564,395
|
|
|
$
|
376,781
|
|
Operating lease right
of use asset
|
|
|
688
|
|
|
|
551
|
|
Intangible assets,
net
|
|
|
4,603
|
|
|
|
6,485
|
|
Deposits on miners and
mining equipment
|
|
|
75,959
|
|
|
|
12,497
|
|
Other long-term
asset
|
|
|
5,718
|
|
|
|
3,990
|
|
Goodwill
|
|
|
8,043
|
|
|
|
—
|
|
Long-term assets held
for sale
|
|
|
—
|
|
|
|
1,545
|
|
Total assets
|
|
$
|
761,578
|
|
|
$
|
452,625
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
65,577
|
|
|
$
|
24,662
|
|
Current portion of
operating lease liability
|
|
|
181
|
|
|
|
113
|
|
Current portion of
finance lease liability
|
|
|
130
|
|
|
|
260
|
|
Current portion of
long-term loans payable
|
|
|
6,992
|
|
|
|
7,786
|
|
Dividends
payable
|
|
|
—
|
|
|
|
21
|
|
Current liabilities
held for sale
|
|
|
1,175
|
|
|
|
1,199
|
|
Total current
liabilities
|
|
$
|
74,055
|
|
|
$
|
34,041
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Operating lease
liability, net of current portion
|
|
|
519
|
|
|
|
447
|
|
Finance lease
liability, net of current portion
|
|
|
9
|
|
|
|
180
|
|
Loans payable, net of
current portion
|
|
|
8,911
|
|
|
|
13,433
|
|
Deferred income
taxes
|
|
|
857
|
|
|
|
—
|
|
Long-term liabilities
held for sale
|
|
|
—
|
|
|
|
512
|
|
Total
liabilities
|
|
$
|
84,351
|
|
|
$
|
48,613
|
|
CLEANSPARK,
INC.
CONSOLIDATED BALANCE
SHEETS (continued)
(in thousands,
except par value and share amounts)
|
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common stock; $0.001
par value; 300,000,000 shares authorized; 160,184,921 and
55,661,337 shares issued and outstanding,
respectively
|
|
|
160
|
|
|
|
56
|
|
Preferred stock;
$0.001 par value; 10,000,000 shares authorized; Series
A shares;
2,000,000
authorized; 1,750,000 and 1,750,000 issued and outstanding,
respectively
|
|
|
2
|
|
|
|
2
|
|
Additional paid-in
capital
|
|
|
1,009,482
|
|
|
|
599,898
|
|
Accumulated other
comprehensive income
|
|
|
226
|
|
|
|
110
|
|
Accumulated
deficit
|
|
|
(332,643)
|
|
|
|
(196,054)
|
|
Total stockholders'
equity
|
|
|
677,227
|
|
|
|
404,012
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
761,578
|
|
|
$
|
452,625
|
|
CLEANSPARK,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands,
except per share and share amounts)
|
|
|
|
For the year
ended
|
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
Revenues,
net
|
|
|
|
|
|
|
Bitcoin mining
revenue, net
|
|
$
|
168,121
|
|
|
$
|
131,000
|
|
Other services
revenue
|
|
|
287
|
|
|
|
525
|
|
Total revenues,
net
|
|
$
|
168,408
|
|
|
$
|
131,525
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
Cost of revenues
(exclusive of depreciation and amortization shown below)
|
|
|
93,580
|
|
|
|
41,234
|
|
Professional
fees
|
|
|
10,869
|
|
|
|
6,469
|
|
Payroll
expenses
|
|
|
45,714
|
|
|
|
40,920
|
|
General and
administrative expenses
|
|
|
20,823
|
|
|
|
10,423
|
|
Loss (gain) on
disposal of assets
|
|
|
1,931
|
|
|
|
(643)
|
|
Other impairment
expense (related to bitcoin)
|
|
|
7,163
|
|
|
|
12,210
|
|
Impairment expense -
other
|
|
|
—
|
|
|
|
250
|
|
Impairment expense -
goodwill
|
|
|
—
|
|
|
|
12,048
|
|
Realized gain on sale
of bitcoin
|
|
|
(1,357)
|
|
|
|
(2,567)
|
|
Depreciation and
amortization
|
|
|
120,728
|
|
|
|
49,045
|
|
Total costs and
expenses
|
|
$
|
299,451
|
|
|
$
|
169,389
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(131,043)
|
|
|
|
(37,864)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
Other
income
|
|
|
11
|
|
|
|
308
|
|
Change in fair value
of contingent consideration
|
|
|
2,484
|
|
|
|
306
|
|
Realized gain on sale
of equity security
|
|
|
—
|
|
|
|
1
|
|
Unrealized loss on
equity security
|
|
|
—
|
|
|
|
(2)
|
|
Unrealized loss on
derivative security
|
|
|
(259)
|
|
|
|
(1,950)
|
|
Interest
income
|
|
|
481
|
|
|
|
190
|
|
Interest
expense
|
|
|
(2,977)
|
|
|
|
(1,078)
|
|
Total other
(expense) income
|
|
|
(260)
|
|
|
|
(2,225)
|
|
|
|
|
|
|
|
|
Loss before income
tax expense
|
|
|
(131,303)
|
|
|
|
(40,089)
|
|
Income tax
expense
|
|
|
857
|
|
|
|
—
|
|
Loss from continuing
operations
|
|
$
|
(132,160)
|
|
|
$
|
(40,089)
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
Loss from discontinued
operations
|
|
$
|
(4,429)
|
|
|
$
|
(17,237)
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
Loss on discontinued
operations
|
|
$
|
(4,429)
|
|
|
$
|
(17,237)
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(136,589)
|
|
|
$
|
(57,326)
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
—
|
|
|
|
336
|
|
|
|
|
|
|
|
|
Net loss
attributable to common shareholders
|
|
$
|
(136,589)
|
|
|
$
|
(57,662)
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
116
|
|
|
|
115
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to common shareholders
|
|
$
|
(136,473)
|
|
|
$
|
(57,547)
|
|
CLEANSPARK,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands,
except per share and share amounts)
|
|
|
|
For the year
ended
|
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
Loss from continuing
operations per common share - basic
|
|
$
|
(1.29)
|
|
|
$
|
(0.95)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
102,707,509
|
|
|
|
42,614,197
|
|
|
|
|
|
|
|
|
Loss from continuing
operations per common share - diluted
|
|
|
(1.29)
|
|
|
|
(0.95)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
102,707,509
|
|
|
|
42,614,197
|
|
|
|
|
|
|
|
|
Loss on discontinued
operations per common share - basic
|
|
$
|
(0.04)
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
102,707,509
|
|
|
|
42,614,197
|
|
|
|
|
|
|
|
|
Loss on discontinued
operations per common share - diluted
|
|
$
|
(0.04)
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
102,707,509
|
|
|
|
42,614,197
|
|
CLEANSPARK,
INC.
RECONCILIATION OF
ADJUSTED EBITDA
(UNAUDITED)
|
|
|
|
|
|
For the Year Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
Net
loss
|
|
$
|
(136,589)
|
|
|
$
|
(57,326)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations
|
|
$
|
4,429
|
|
|
$
|
17,237
|
|
Impairment expense -
other
|
|
|
—
|
|
|
|
250
|
|
Impairment expense -
goodwill
|
|
|
—
|
|
|
|
12,048
|
|
Depreciation and
amortization
|
|
|
120,728
|
|
|
|
49,045
|
|
Stock based
compensation
|
|
|
24,142
|
|
|
|
31,466
|
|
Other income
|
|
|
(11)
|
|
|
|
(308)
|
|
Change in fair value of
contingent consideration
|
|
|
(2,484)
|
|
|
|
(306)
|
|
Realized gain on sale
of equity security
|
|
|
—
|
|
|
|
(1)
|
|
Unrealized gain on
equity security
|
|
|
—
|
|
|
|
2
|
|
Unrealized loss
on derivative security
|
|
|
259
|
|
|
|
1,950
|
|
Interest
income
|
|
(481)
|
|
|
(190)
|
|
Interest
expense
|
|
2,977
|
|
|
1,078
|
|
Loss (gain) on
disposal of assets
|
|
1,931
|
|
|
(643)
|
|
Income tax
expense
|
|
857
|
|
|
—
|
|
Legal fees
related to litigation & settlement related expenses
|
|
7,872
|
|
|
522
|
|
Legal fees
related to financing & business development
transactions
|
|
697
|
|
|
827
|
|
Severance
expenses
|
|
701
|
|
|
405
|
|
Total
Adjusted EBITDA1
|
|
$
|
25,028
|
|
|
$
|
56,056
|
|
Investor Relations Contact
Brittany Moore
702-989-7693
ir@cleanspark.com
Media Contact
Eleni Stylianou
702-989-7694
pr@cleanspark.com
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SOURCE CleanSpark, Inc.