CleanSpark Going On A Spending Spree Despite Crypto Winter

CleanSpark, a bitcoin mining company based in the US, plans to continue to go along with its mergers and acquisitions, despite a crypto winter in sight. This comes after the company released its quarterly reports, which fell short by a little of its targeted projections.

CleanSpark Continues Its M&A Spree In an Unreliable Market

CleanSpark released its quarterly earnings on Feb 9, where the results were close to their predictions, and this report has left the company optimistic about the company’s growth in the future.

So far, the company’s strategy to continue with its acquisitions has worked well, as it has experienced explosive growth over the last 12 months. The company believes that this growth will continue to sustain as they undergo more acquisitions throughout the year.

Gary Vecchiarelli, Chief Financial Officer of the firm, said that “We don’t feel compelled to go out and have to do M&A but obviously if we see a good deal we’ll take advantage of that,” in a conference call discussing the company’s first-quarter earnings.

He believes that the company will get even better opportunities if Bitcoin’s price does not reach $40,000 in the next halving event. Since there will be a lot of small mining companies that couldn’t sustain their operation; consequently create a purchase opportunity for CleanSpark. The struggle faced by mining companies currently, as they deal with falling markets and higher energy costs, is a testament to the prediction that better opportunities for CleanSpark are to follow.

The company has referred to its acquisitions as “thoughtful” and “calculated”, as well as its capital deploying strategy to be effective. And positioned itself to be able to “pick off infrastructure and assets at good deals” as it had done previously.

Adding to it, Vecchiarelli said that “We have been successful in sourcing and closing transactions which not only grow our percentage of the total global hash rate but also produce meaningful bitcoin and cash flow while still paying down what little debt we have,”

The company will finance these deals by selling equity and mined bitcoins, it said on the conference call. In addition to that, the CEO of the company said that it will raise the number of authorized shares for insurance from the previously decided 100 million, to 300 million.

CleanSpark Reports Positive Quarterly Earnings

CleanSpark released its numbers for the last quarter and developed a bunch of new strategies based on the company’s positive numbers.

Zach Bradford, the company’s CEO, said that “We have reliably grown, quarter over quarter, as we execute an operational strategy that we believe makes us one of the fastest growing, most reliable, and most efficient publicly traded bitcoin miners in North America,”

He further added, “While we faced headwinds due to depressed Bitcoin prices during most of our fiscal first quarter, we persisted and grew. Our average hashrate rapidly increased, outpacing global hashrate, and we mined the most bitcoin ever in a single quarter. Last month we had our highest monthly production ever, at nearly 700 bitcoins. We are starting to see all the hard work we put in during our last quarter pay off and we expect to continue to deliver on our goals as we work toward our calendar year-end guidance of 16 EH/s.”

Vecchiarelli also shared his input on the company’s success, saying “Exactly one year ago we shared our vision and strategy for being a top-five miner. Not only did we achieve that goal rather quickly, but we have also set the tone for other miners about what a proper and prudent business model looks like in this industry,”

In the quarter ending on December 31, 2022, the company reported a total revenue of $27.8 million, which was a 25% decline from the company’s revenue for the exact same period in 2021. CleanSpark also recognized a loss of $29 million for the quarter, while previously it had attracted an income of $14.5 million.

As of now, the company has cash reserves of $2.1 million and bitcoin holdings of $3.9 million. Total current assets for the company stand at $21.2 million, while the total mining assets are recorded to be $349 million. Total assets, so far, stood at $487 million.

The current and total liabilities, on the other hand, rest at $41.6 million and $59.8 million currently. While the stakeholder’s equity accounts for $427 million. The company has a debt of $19.6 million as of December 31, after it paid off 8% of its existing equity for $1.6 million.

CleanSpark purchased over 3,800 Antminer in November last year at a below-market price. In September, the company acquired a mining facility for $33 million, in addition to a 36-watt megawatt facility for $16.2 million in Georgia. Previously, in June and July, the company also purchased thousands of Bitcoin miners for a considerably discounted price.

It plans to continue its questions and expansion plans, starting with building a 50-megawatt mining facility in Washington. Despite this, the company’s stock CLSK fell on Friday by 5.26% over the last 24 hours.

About CleanSpark

CleanSpark, listed on the NASDAQ under the symbol CLSK, is a technology company that specializes in Bitcoin mining and energy solutions and is a leading player in the American Bitcoin mining industry. Since 2014, the company has been assisting individuals and businesses in achieving energy independence. In 2020, CleanSpark shifted its focus to the creation of environmentally friendly infrastructure for the purpose of Bitcoin mining. The company is dedicated to enhancing the planet’s health and invests in renewable energy sources such as wind, solar, hydro, and nuclear.

The company was ranked 44th on the Financial Times’ list of the 500 Fastest Growing Companies in the Americas in 2022 and came in at number 13 on Deloitte’s Fast 500. The company’s stocks trade on equity exchanges and are denoted by the symbol CLSK.

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