CleanSpark, Inc. (CLSK) Q1 2023 Update

CleanSpark, Inc. (CLSK) Q1 2023 Update

What does Cleanspark (CLSK) do?

CleanSpark, Inc. engages in Bitcoin mining operations.

Is CLSK Halal?

We hold a comfortable rating for CLSK. See details here.

Just the Numbers

  • The company experienced a 130% increase in bitcoin production in Q1 of 2023 fiscal year, mining over 1,500 bitcoin due to the deployment of 45,000 miners in the past 12 months.
  • Despite the increase in bitcoin production, there was a decrease in revenue by $10 million due to the steep decline in the price of bitcoin.
  • Gross profit was $7.4 million, which declined from $31 million in the same quarter of the previous year due to the decline in bitcoin prices.
  • The company recognized a GAAP net loss of $29 million, compared to a net income of $14.5 million in Q1 of last year, mostly due to non-cash items such as depreciation and stock-based compensation.
  • The company recognized a slightly negative adjusted EBITDA of $1.4 million in the current quarter due to lower bitcoin prices, but the CEO feels confident that this is not a trend that will continue in the second quarter due to the recent increase in bitcoin prices.
  • The company has a healthy balance sheet with $2 million of cash on hand, $6 million in assets held for sale, and a total debt of less than $20 million, which was paid down by $1.6 million in the first quarter. The company requires significant CapEx for its operations, with a goal of reaching 16 exahash by the end of the year.

Beyond the Numbers

  • Despite macroeconomic headwinds, the company was able to increase its average hashrate and number of machines.
  • The company added a new mining campus to its portfolio and saw its highest-ever bitcoin production, outpacing its peers.
  • The company owns and operates its infrastructure and has a dedicated team that results in high uptime and long-term benefits for shareholders.

Buy & Sell

Below, you’ll find our New buy price for Cleanspark (the price below which we would still buy the company).

And our New Sell price (the price above which we would sell our shares).

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