CleanSpark stock rises following strong first quarter earnings

Published 07/02/2025, 13:28
© Reuters.

Investing.com -- Shares of CleanSpark , Inc. (NASDAQ: NASDAQ:CLSK) climbed 7% after the company reported first quarter earnings per share (EPS) and revenue that exceeded analyst expectations. The Las Vegas-based Bitcoin mining company announced a significant increase in revenue and net income, bolstered by improved operational efficiency and a reduction in the cost to mine Bitcoin.

CleanSpark posted a first quarter EPS of $0.83, which was $0.66 higher than the analyst estimate of $0.17. The company’s revenue for the quarter was reported at $162.3 million, surpassing the consensus estimate of $153.06 million and marking a 120% increase from the $73.8 million reported in the same quarter of the previous year.

The company’s financial strength was evident in the quarter ended December 31, 2024, with a net income of $246.8 million, or $0.85 per basic share, compared to $25.9 million, or $0.14 per basic share, for the same period in the prior year. CleanSpark’s adjusted EBITDA also saw a substantial rise to $321.6 million from $69.1 million year-over-year (YoY).

Operational highlights included a 42% quarter-over-quarter (q/q) increase in deployed hash rate and a 20% improvement in fleet efficiency. Moreover, the company achieved a 6% reduction in the marginal cost to mine each Bitcoin, bringing it down to approximately $34,000 at owned facilities, and a 14% reduction in total operating expenses.

H.C. Wainwright analyst Mike Colonnese commented on the results, stating, "CleanSpark’s impressive F1Q results were supported by a 42% q/q increase in deployed hash rate, 20% q/q improvement in fleet efficiency, 6% q/q reduction in direct production costs per coin, and a 14% reduction in total opex."

CEO Zach Bradford expressed confidence in the company’s growth trajectory, noting that CleanSpark exceeded its 2024 guidance and is on track to achieve a 50 EH/s hash rate in the first half of 2025. The company’s expansion strategy is expected to unfold within communities where it already operates, with projects in Wyoming, Tennessee, and Georgia.

CFO Gary Vecchiarelli highlighted CleanSpark’s evolving capital strategy, including the closing of a $650 million convertible bond and the conclusion of an at-the-market offering program. He emphasized the company’s strong balance sheet, with nearly $2.8 billion in assets and $1.2 billion in total liquidity, and a bitcoin treasury that has grown to over 10,500 coins, all mined in the USA.

Investors appeared to respond positively to the robust financial results and the company’s strategic initiatives aimed at further growth and efficiency in the competitive Bitcoin mining industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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