CleanSpark (CLSK) Q1 2025 earnings summary

Executive summary

• Achieved Q1 revenue of $162.3M, up 120% year-over-year, with net income of $246.8M and adjusted EBITDA of $321.6M, setting new industry benchmarks.

• Surpassed 39.1 exahash, exceeding the 37 exahash target, and remain on track to reach 50 exahash by mid-2025, fully funded by a $650M convertible bond.

• Completed the acquisition of GRIID Infrastructure, expanding operations in Tennessee and increasing total contracted power capacity to 853 MW.

• Maintained a disciplined capital strategy, holding over 10,000 self-mined Bitcoin, now the fourth-largest corporate Bitcoin treasury globally.

• Ended the quarter with $280M in cash and $929M in bitcoin holdings at fair value.

Financial highlights

• Revenue increased 120% year-over-year, driven by higher Bitcoin prices and improved production efficiency.

• Gross profit margin reached 57% for the quarter, with gross profit up $47.1M year-over-year.

• Adjusted EBITDA was $321.6M, and net income was $246.8M, both significantly higher than prior periods.

• Cost to mine Bitcoin decreased to $34,000, a 6% improvement from the prior quarter.

• Working capital was $1.2B, including $50M capacity on a bitcoin-collateralized line of credit.

Outlook and guidance

• Confident in reaching 50 exahash by the first half of 2025, with all growth fully funded and no reliance on equity.

• Expansion focused on Georgia, Wyoming, and Tennessee, leveraging greenfield construction and existing sites.

• Regional expansion strategy, proven in Georgia, is being replicated nationally.

• Management expects existing cash, bitcoin, and operations to cover liquidity needs for the next 12 months.

• Ongoing evaluation of strategic acquisitions and capital market opportunities.