Sign in

You're signed outSign in or to get full access.

CI

CLEANSPARK, INC. (CLSK)·Q1 2025 Earnings Summary

Executive Summary

  • CleanSpark delivered $162.3M revenue (+120% YoY) and $246.8M net income in Q1 FY2025, with basic EPS of $0.85 and adjusted EBITDA of $321.6M; gross margin was 57% .
  • Operating hashrate ended the quarter at 39.1 EH/s with fleet efficiency of 17.59 J/Th; marginal cost per bitcoin was ~$34,000, down ~6% QoQ from ~$36,250 in Q4 .
  • Management accelerated the 50 EH/s target to the first half of 2025, fully funded by the $650M zero‑coupon convertible notes; they also repurchased ~11.8M shares and ended the quarter with ~$1.2B liquidity and ~10,000 BTC .
  • Wall Street consensus (S&P Global) could not be retrieved at this time; estimate comparisons are unavailable and should be refreshed for trading context (see Estimates Context).
  • Post‑quarter catalysts include inclusion in S&P SmallCap 600 (effective March 24, 2025), continued monthly hashrate/build updates, and treasury management initiatives that may monetize BTC holdings at lower cost of capital .

What Went Well and What Went Wrong

What Went Well

  • Record quarter: $162.3M revenue (+120% YoY) and $246.8M net income; adjusted EBITDA reached $321.6M; gross margin 57% .
  • Efficiency and cost: Fleet efficiency improved to 17.59 J/Th at quarter‑end, marginal cost per coin fell to ~$34,000; BTC held rose from 9,952 at 12/31 to 10,556 by 1/31 .
  • Strategy and funding: Accelerated path to 50 EH/s by H1 2025, fully funded via $650M 0% convert; ~11.8M shares repurchased, capped call set at $24.66 to limit dilution .
  • Quote: “We exceeded 2024 guidance and surpassed 40 EH/s in January, while driving fleet efficiency down to 16.15 J/Th” — CEO Zach Bradford .
  • Quote: “We overcame virtually all of the halving impact… growing our current bitcoin treasury to over 10,500… one of the cleanest balance sheets in the industry” — CFO Gary Vecchiarelli .

What Went Wrong

  • Uptime dip: Portfolio uptime eased to ~94% due to a hurricane and ~8,000 miner moves amid upgrades, though efficiency gains offset the impact .
  • Power costs rose: All‑in power cost increased to ~$0.049/kWh vs ~$0.048 in Q4 and ~$0.044 YoY, though margins expanded on efficiency and price tailwinds .
  • Reliance on fair‑value BTC gains: Net income benefitted from a large unrealized fair‑value gain on BTC and a gain related to BTC collateral; underlying operating performance should be tracked excluding these effects .

Financial Results

MetricQ2 FY2024 (3/31/24)Q3 FY2024 (6/30/24)Q1 FY2025 (12/31/24)
Revenue ($USD Millions)$111.799 $104.108 $162.306
Net Income ($USD Millions)$126.735 ($236.242) $246.791
Basic EPS ($USD)$0.59 ($1.03) $0.85
MetricQ2 FY2024Q3 FY2024Q1 FY2025
Adjusted EBITDA ($USD Millions)$181.829 ($12.669) $321.649
KPIQ2 FY2024Q3 FY2024Q1 FY2025
Operating Hashrate (EH/s)>17 >22 39.1
Fleet Efficiency (J/Th)—22.3 17.59
Marginal Cost per BTC ($)—Energy ~$27,000; all‑in < $44,000 ~$34,000
BTC Treasury (BTC)5,021 (as of 3/31) ~6,600 (as of 6/30) 9,952 (12/31); 10,556 (1/31)
Cash ($USD Millions)$323.1 $129.2 $276.6
Liquidity ($USD Billions)$0.681 $0.542 ~$1.2

Notes: Q1 FY2025 gross margin was 57% . Q1 net income includes a significant fair‑value BTC gain and gain on BTC collateral .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating Hashrate (EH/s)H1 2025“50 EH/s and beyond in 2025” 50 EH/s by first half of 2025 Raised/Accelerated
Year‑end FY2024 Hashrate (EH/s)YE 2024≥37 EH/s Achieved/exceeded at 37.5 EH/s (Dec 23) and 39.1 EH/s at 12/31 Achieved
Indirect Expenses (OpEx)FY2025—Expected relatively flat for remainder of fiscal year Maintained/Disciplined
Equity/ATM UsageNear termActive ATM in FY2024 ATM concluded; no immediate plans for new equity/ATM given convert proceeds Lowered external equity reliance
Treasury Strategy2025Holding BTC; limited utilization Build institutional‑grade treasury; crawl‑walk‑run to put portion of BTC to work (not 100%) Clarified approach

Earnings Call Themes & Trends

TopicQ2 FY2024 (3/31)Q3 FY2024 (6/30)Q1 FY2025 (12/31)Trend
Exahash Growth>17 EH/s, on path to 32 EH/s by YE >22 EH/s; continued expansions (GA/TN/WY) 39.1 EH/s; cadence to 50 EH/s even monthly adds Up sharply
Efficiency & CostAll‑in power ~$0.043/kWh; wholesale as low as $0.013/kWh All‑in ~$0.048/kWh ~$0.049/kWh; marginal cost per BTC ~$34k (vs ~$36,250 in Q4) Slightly higher kWh; better $/BTC
Treasury (BTC/HODL)Kept ~100% of production; +2,000 BTC in Q2 ~6,600 BTC; $50M Coinbase LOC secured ~10k BTC; build treasury team; selective yield (RFPs) Larger; institutionalizing
Capital StrategyMinimal debt; strong cash Coinbase LOC; M&A pipeline $650M 0% convert, capped call, buyback 11.8M shares; fully funded to 50 EH/s Funding secured; lower dilution
AI/HPC Narrative—Emphasis on BTC mining; infrastructure‑first Skeptical on pivoting to HPC; BTC mining faster/less complex Focus on core BTC
Regulatory——SEC repealed SAB 121; supportive policy tone noted Improving backdrop

Management Commentary

  • “We exceeded 2024 guidance and surpassed 40 EH/s in January, while driving fleet efficiency down to 16.15 J/Th… delivered $162.3M in revenue at a marginal cost to mine of approximately $34,000 per bitcoin for the quarter.” — CEO Zach Bradford .
  • “Our capital strategy continues to evolve, as demonstrated by the closing of our $650M convertible bond… growing our current bitcoin treasury to over 10,500… We have one of the cleanest balance sheets in the industry.” — CFO Gary Vecchiarelli .
  • “It should be a pretty even cadence over the next 6 months… add that remaining 10 EH/s over the next couple of months.” — CEO on path to 50 EH/s .
  • “We remain disciplined… repurposing for HPC is complex… BTC mining remains an efficient, proven and scalable business model.” — CEO on AI/HPC .
  • “As of the close of the quarter, we had over $1.2B of liquidity… cautious in further leveraging our balance sheet… build an institutional‑grade Bitcoin treasury team.” — CFO .

Q&A Highlights

  • Treasury utilization: RFPs underway; crawl‑walk‑run approach; do not plan to put 100% of HODL to work initially .
  • Growth cadence: ~even monthly adds to reach 50 EH/s; primarily expansions and greenfield in existing regions (GA/WY/TN) .
  • OpEx discipline: Indirects targeted to be relatively flat; efficiency and scale drive operating leverage; convert pricing and low rig costs help ROI .
  • Rig market dynamics: Fixed‑price options at $21.50/TH; spot ~37% higher; deep vendor relationships enable low‑cost, high‑quality procurement .
  • Capital returns optionality: Buyback of ~11.8M shares; potential to return capital once balance sheet fortified and opportunities harvested .

Estimates Context

  • S&P Global consensus estimates for revenue and EPS were unavailable at the time of this analysis due to access limits; consequently, estimated vs. actual comparisons cannot be provided and should be refreshed before trading decisions.
  • CleanSpark’s Q1 FY2025 actuals: Revenue $162.306M, basic EPS $0.85, adjusted EBITDA $321.649M, gross margin 57% .
  • Without consensus figures, we anchor to management’s disclosures: revenue +82% QoQ; ~33% more BTC produced QoQ; marginal cost per BTC fell ~6% QoQ to ~$34k .

Key Takeaways for Investors

  • CleanSpark’s accelerated, fully funded path to 50 EH/s by H1 2025 sets a near‑term volume and margin catalyst; expect even monthly hashrate adds to support revenue and EBITDA growth if BTC pricing holds .
  • Efficiency improvements (17.59→16.15 J/Th) and $34k marginal cost per BTC enhance operating leverage; monitor kWh trends ($0.049) vs power markets and curtailment dynamics .
  • Balance sheet strength (>$1.2B liquidity, ~10k BTC) plus 0% convert and capped call reduce near‑term equity needs; buyback (~11.8M shares) signals confidence and potential for future capital returns .
  • Treasury strategy institutionalization could unlock non‑dilutive financing/yield with risk controls; watch counterparties, utilization %, and program timing .
  • Competitive positioning: Staying pure‑play BTC while peers explore HPC may expand CleanSpark’s daily BTC share; execution on WY/TN/GA expansions remains key .
  • Post‑quarter index inclusion (S&P SmallCap 600) broadens investor base and passive demand; monitor flow and short‑term price action into effective date (Mar 24) .
  • With estimates unavailable here, refresh S&P Global consensus ahead of trades to calibrate beat/miss probabilities and expected revision momentum.