The miner suffered a $29.3 million loss for the fiscal quarter, partly driven by the previously disclosed decision to sell its energy assets.

CleanSpark (CLSK) – reporting results for its fiscal third quarter – said it will sell its energy business assets in order to focus completely on bitcoin (BTC) mining.

CleanSpark got its start in 2014 providing energy products to homes and businesses. It entered bitcoin mining in 2020, according to the company website. Today, more than 90% of revenue comes from bitcoin mining, CEO Zach Bradford said during Tuesday’s earnings conference call.

The firm reported a $29.3 million net loss for the third quarter of its fiscal year, in part driven by the reclassification of the energy business to be discontinued, which resulted in a $10.6 million impairment charge.

The miner’s adjusted EBITDA was $15.2 million for the quarter, down from $22.5 million in the previous quarter.
Revenue of $31 million missed analyst estimates for $34.5 million, according to FactSet data. Adjusted EBITDA of $15.2 million was down from $22.5 million the previous quarter.

CleanSpark differs from some other bitcoin miners as it has been a consistent seller of mined bitcoin to raise cash. It thus entered this current bear market with less debt and has been in acquisition mode. The latest deal was announced earlier Tuesday – the purchase for $25.1 million of an active 36 megawatt (MW) bitcoin mine in the U.S. state of Georgia, as well as 3,400 mining rigs currently running at the site.

The company upped hashrate guidance for year-end 2022 to 5 exahash/second (EH/s), and issued guidance for the end of 2023, when it expects to reach 22.4 EH/s.
CleanSpark differs from some other bitcoin miners as it has been a consistent seller of mined bitcoin to raise cash. It thus entered this current bear market with less debt and has been in acquisition mode. The latest deal was announced earlier Tuesday – the purchase for $25.1 million of an active 36 megawatt (MW) bitcoin mine in the U.S. state of Georgia, as well as 3,400 mining rigs currently running at the site.

The post CleanSpark Raises Year-End Hashrate Guidance, Sets 2023 Outlook appeared first on Crypto Insider.

The deal with Houston-based Lancium will give CleanSpark a mining hashrate of 16 EH/s by spring 2023.

Bitcoin miner CleanSpark (CLSK) announced a deal with energy technology company Lancium to secure an initial 200 megawatts (MW) at Lancium’s renewable-powered West Texas datacenters, with an option for an additional 300MW in the future.

CleanSpark expects about 50MW of the purchased capacity to be operational by the end of this year, with the remaining 150MW to be fully online during spring 2023, the company said in a statement. At full deployment of the 200MW power capacity, the miner’s hashrate is expected to be 16 exahash per second (EH/s), or quadruple previous guidance for year-end 2022.

In comparison, Core Scientific (CORZ), the largest publicly traded bitcoin miner by hashrate, expects its year-end mining capacity to reach 40 EH/s-42 EH/s. Meanwhile, Marathon Digital (MARA) sees its hashrate at approximately 23.3 EH/s by early 2023, and Riot Blockchain (RIOT) anticipates hitting 12.8 EH/s by the end of 2022.

CleanSpark’s stock has been a sizable outperformer in 2022, gaining 30% versus declines of 22% for Core Scientific, 10% for Marathon and 1% for Riot.

“We continue to build more capacity at our own bitcoin mining facilities while we partner with colocation service providers,” said CleanSpark’s CEO Zach Bradford in the statement. “This hybrid approach helps us ensure that we always have rackspace ready to deploy new machines when they are delivered to us by the manufacturers,” he added.

Lancium and its “Clean Campuses” made for an “ideal” partner for CleanSpark, continued Bradford, whose company has a goal to use 100% renewable energy. “Lancium’s facilities are best-in-class, scalable and, importantly, draw their power from renewable-rich West Texas.”

CleanSpark currently has three operating locations that use more than 95% sustainable power sources, including solar, wind, hydro and nuclear, according to a recent presentation.

Houston-based Lancium last November raised $150 million in financing led by clean energy provider Hanwha Solutions. The company’s Clean Campus data centers will host bitcoin mining, high throughput computing and other energy intensive applications, while providing power management services.

Lancium’s proprietary “Smart Response” software allows these campuses to function as large power stations in reverse, absorbing renewable energy while providing grid ancillary services and helping manage the power flow more efficiently.

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The company would rather focus on its highly successful bitcoin mining efforts.

Bitcoin miner CleanSpark (CLSK) is considering strategic alternatives for its legacy energy business, aiming to focus solely on its bitcoin mining segment, the company said in a statement accompanying its quarterly earnings for the three months ended Dec. 31.

“Focusing our efforts on our bitcoin mining segment allows the Company to capitalize on the tremendous opportunity bitcoin presents,” said Zach Bradford, CleanSpark’s CEO, in a statement.

According to CleanSpark’s 2021 annual report, its energy hardware, software and services segment contributed about $9 million, or 18% of its annual revenue of $49.4 million.

CleanSpark also reported that its first quarter revenue increased to $41.2 million, about 52% higher than the $27.1 million in the previous quarter.

The company currently has 20,900 machines in operation with a total hashrate exceeding 2.1 Exahash/second and producing approximately 10 bitcoin per day.

The miner’s stock was up about 8% in after hours trading following the release of its report

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