U.S. stocks edge higher; solid earnings season continues
LAS VEGAS - CleanSpark Inc. (NASDAQ:CLSK), a publicly traded bitcoin mining company, announced today that it has reached an operational hashrate of 30 exahashes per second (EH/s), marking a significant milestone in its expansion efforts. This achievement represents a 200% increase in hashrate since October 2023.
The company attributes its growth to organic expansion, strategic acquisitions, and a fleet upgrade that improved efficiency by nearly 20%. These upgrades have also increased the number of operational machines by 112%, allowing CleanSpark to generate more computing power with fewer resources. As a result of these enhancements, the company has managed to reduce energy consumption while expanding its mining capabilities.
Looking ahead, CleanSpark expects to surpass 37 EH/s by the end of 2024 and aims to continue its upward trajectory, targeting 50 EH/s and beyond in 2025. The company anticipates additional hashrate from the expected acquisition of GRIID Infrastructure Inc. this month. With a portfolio of sites across Georgia, Mississippi, Wyoming, and Tennessee, CleanSpark is one of North America's largest owned-and-operated bitcoin miners.
Zach Bradford, CEO of CleanSpark, commented on the company's progress, stating, "Reaching 30 EH/s positions us as one of the largest bitcoin miners in the world. We have added more operational hashrate than any other miner in 2024." He also noted the company's strategic timing in the market, which allowed it to secure competitive pricing on mining rigs and sites.
CleanSpark's commitment to scaling its operations efficiently is also reflected in its growing bitcoin treasury, which now exceeds 8,049 bitcoins. Since October 2021, the company has seen a significant increase in its computing power year over year, quadrupling in 2022, nearly doubling in 2023, and tripling its hashrate in 2024.
The company, which prides itself on running data centers primarily on low-carbon power, emphasizes its role in supporting Bitcoin as a crucial digital commodity and tool for financial independence and inclusion.
This announcement is based on a press release statement, and forward-looking statements within it are subject to risks and uncertainties that could affect the company's actual results. These include the anticipated growth in hashrate, the successful closing of the GRIID acquisition, and the completion of data center constructions. CleanSpark has made no obligation to update or revise any forward-looking statements, as they are based on current expectations and are subject to change.
In other recent news, CleanSpark Inc. has seen major developments in its operations. The company reported a record-breaking Q2 revenue for fiscal year 2024 of $111.8 million. CleanSpark also announced the termination of its mining services agreement with Coinmint, marking a strategic shift in operations.
The company has been active on the acquisition front, adding seven Bitcoin mining facilities in Tennessee to its portfolio. Despite disruptions from Hurricane Helene, CleanSpark demonstrated resilience by swiftly resuming operations, maintaining an operational hashrate of 28.7 EH/s.
Analyst firms have responded positively to these developments, with Macquarie upgrading CleanSpark's stock to an Outperform rating while H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings.
Furthermore, CleanSpark has promoted Brian Carson to the position of chief accounting officer, a move aimed at strengthening its financial management. Carson, who brings over three decades of experience in corporate accounting and financial planning, will oversee the company's accounting and SEC financial reporting.
These are the recent developments in CleanSpark's operations and strategic direction.
InvestingPro Insights
CleanSpark's recent achievement of reaching 30 EH/s in operational hashrate is reflected in its impressive financial performance. According to InvestingPro data, the company's revenue growth stands at a remarkable 140.89% over the last twelve months as of Q3 2024, with quarterly revenue growth at 128.69%. This aligns with the company's rapid expansion in mining capabilities and efficiency improvements.
The company's strategic moves are paying off, as evidenced by an InvestingPro Tip indicating that net income is expected to grow this year. This positive outlook is further supported by analysts anticipating sales growth in the current year, which corresponds with CleanSpark's projections to reach 37 EH/s by the end of 2024 and 50 EH/s in 2025.
Despite the recent achievements, investors should note that CleanSpark's stock price has fallen significantly over the last three months, with a -41.63% price total return. This volatility is typical in the cryptocurrency mining sector and aligns with another InvestingPro Tip stating that the stock's price movements are quite volatile.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for CleanSpark, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.