Executive Summary

Record quarter: revenue $111.8M (+163% YoY), net income $126.7M, diluted EPS $0.58, and adjusted EBITDA $181.8M, driven by higher bitcoin prices and rapid hashrate expansion to ~16.4 EH/s by quarter-end .
Quality of earnings: net income included a $119.7M unrealized gain from marking bitcoin to fair value under ASC 350-60, a new accounting policy adopted in FY24 .
Operating advantages: wholesale power as low as 1.3¢/kWh and all-in power cost of 4.3¢/kWh at wholly owned sites; working capital of $632.7M, cash $323.1M, bitcoin $358.0M, and minimal debt (~$12.8M) .
Expansion catalysts: definitive agreements to acquire 75 MW in Wyoming (~>4 EH/s; potential +55 MW to ~7.4 EH/s), reaffirmed path to ~32 EH/s by YE24 and ~50 EH/s in 2025; expected hash cost to decline from ~$32 to just under $28 with S21 Pro deployment .

What Went Well and What Went Wrong

Material scale-up and efficiency: “We recorded $111.8 million in revenue and $181.8 million in adjusted EBITDA… Our efficiency is amongst the best globally,” with current capacity >17 EH/s and eight owned/operated data centers .
Power cost leadership and margins: “Wholesale power costs as low as 1.3 cents… all-in power cost of 4.3 cents per kilowatt hour,” supporting margin expansion vs Q1 and YoY; owned site energy expense was 26.6% of bitcoin revenue in Q2 .
Balance sheet strength and HODL strategy: ended Q2 with ~$700M cash+bitcoin, virtually no debt; added >2,000 BTC during Q2 and recognized ~$120M fair value gain, reflecting adoption of fair value accounting for bitcoin .

Earnings composition: $119.7M of Q2 income was unrealized bitcoin fair value gain, diluting operating comparability vs prior periods under earlier impairment accounting .
Operational delay: Sandersville transformer commissioning delay left 50 MW not yet energized, temporarily constraining hashrate vs plan; management lacks a precise energization timeline .
Rising OpEx components: Q2 payroll +10% QoQ and G&A +36% QoQ, including ~$0.5M non-recurring miner shipping and ~$1.2M property tax accrual tied to expanded asset base .

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$42.546	$73.786	$111.799
Net Income ($USD Millions)	($18.460)	$25.909	$126.735
Diluted EPS - Continuing Ops ($)	($0.23)	$0.14	$0.58
Adjusted EBITDA ($USD Millions)	$12.721	$69.090	$181.829

Segment mix

Revenue Mix	Q2 2023	Q1 2024	Q2 2024
Bitcoin mining revenue ($USD Millions)	$42.488	$73.786	$111.799
Other services revenue ($USD Millions)	$0.058	$0.000	$0.000

Operational KPIs

KPI	Q2 2023	Q1 2024	Q2 2024
Bitcoin mined (units)	1,871	—	2,031
Avg revenue per BTC mined ($)	$22,706	—	$55,030
Owned sites: avg power price ($/kWh)	$0.046	$0.044	$0.043
Hosted sites: hosting fee ($/kWh)	$0.059	—	$0.075
Cost to mine one BTC (owned, $)	$11,039	—	$14,692
End-period operating hashrate (EH/s)	6.7	~12.5 (current hashrate surpass)	16.4
Bitcoin holdings (units)	—	3,700+ (as of call date)	5,021 (as of 3/31/24)

Balance sheet highlights (Q2 2024)

Cash $323.1M; Bitcoin $358.0M; Current assets $687.8M; Current liabilities $55.0M; Total debt ~$12.8M; Working capital $632.7M .

Notes: BTC mined and average revenue per BTC from MD&A/statements; Q1 2024 BTC mined not disclosed in the press release or 8-K excerpts provided .

Metric	Period	Previous Guidance	Current Guidance	Change
Capacity under management (EH/s)	YE 2024	~32 EH/s targeted	Reaffirmed ~32 EH/s	Maintained
Capacity under management (EH/s)	2025	50 EH/s targeted	Reaffirmed 50 EH/s	Maintained
Wyoming sites (MW / EH/s)	2H 2024 build	N/A	75 MW for >4 EH/s; potential +55 MW to ~130 MW → ~7.4 EH/s	New
Hash cost ($/TH, all-in)	Post S21 Pro deployment	~$32 current	“Just under $28” expected	Lowered (improved)

CLSK did not issue quantitative revenue/EPS/EBITDA guidance; guidance is operational (MW/EH/s, hash cost) .

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Scale and efficiency	Surpassed 10 EH/s, positioned for halving	>17 EH/s capacity; ~16.4 EH/s operating; industry-leading hash cost focus	Strengthening
Power strategy	Avg power $0.044/kWh in Q1; fixed 5-year PPAs in Mississippi ~5¢	Wholesale as low as 1.3¢; all-in 4.3¢; active power management	Improving
Halving readiness	Prepared; expects less efficient miners to drop off	Post-halving plan; sees consolidation; opportunity to acquire distressed sites	Opportunity rising
M&A pipeline	Miss. sites (turnkey), Dalton expansions	Wyoming 75 MW; selective tuck-ins; prefer acquisitions over mergers	Active
Technology/firmware	S21 units show flexibility; 15.8 J/TH; up to 220 TH on air-cooled	Upgraded S21 to S21 Pro; 17% more purchased hashrate at same cost/TH	Advancing
Regional footprint	Georgia base; expansion to Mississippi	Adds Wyoming; >550 MW capacity potential on close	Diversifying
Regulatory/community	Community engagement; utility partnerships in GA	Wyoming support (blockchain rate); supportive utility relationships	Supportive

CEO: “We’ve achieved remarkable milestones this past quarter… bolstered our total capacity to over 17 EH/s” .
CEO: “We… secured our position as the second largest vertically integrated, publicly traded bitcoin mining company in North America” .
CFO: “Wholesale power costs as low as 1.3 cents per kilowatt hour… very favorable all-in power cost of 4.3 cents” .
CFO: “We recognized a gain on fair value of almost $120 million… we kept nearly 100% of our bitcoin production for the period” .
CEO on hash cost trajectory: “Our current hash cost around $32… expected… just under $28 once the S21 Pros… are deployed” .

Wyoming build schedule and power costs: 45 MW site partly ready; target ~120 days; 75 MW completion before winter; low wholesale power supported by a state blockchain rate .
M&A environment: Post-halving distress opening opportunities; preference for private tuck-ins; equity or cash; flexibility to integrate operations .
Supply chain readiness: >50 MW of transformers/switchgear already secured; minimal constraints expected for Wyoming .
Transformer delay at Sandersville: 50 MW pending commissioning; utilities working earnestly; updates forthcoming .

Wall Street consensus (S&P Global) for Q2 2024 EPS/revenue was unavailable at time of retrieval; comparison to estimates could not be completed due to data access limits. No estimate-derived values are presented here.

Scale and cost leadership are differentiating: record revenue/EBITDA, industry-low power costs, and expanding hashrate underpin stronger unit economics through the cycle .
Be mindful of earnings quality: Q2 GAAP net income heavily reflects unrealized bitcoin fair value gains; cash-adjusted operating performance still solid but less dramatic than GAAP optics .
Capacity growth remains a key catalyst: Wyoming adds near-term EH/s with optional further expansion; reaffirmed 32 EH/s by YE24 and 50 EH/s in 2025 .
Post-halving opportunity set: management expects consolidation and distressed assets, enabling accretive tuck-ins; balance sheet liquidity supports M&A without heavy leverage .
Hash cost trajectory improves: S21 Pro deployment targeted to push hash cost just under $28 vs current ~$32; enhances resilience at lower hash price scenarios .
Watch operational milestones: Sandersville transformer commissioning timeline; energization pace in Wyoming; monthly BTC production/pricing .
Medium-term thesis: vertically integrated, low-cost miner with diversified footprint and tech stack; value accrues via scale, efficient operations, and strategic HODL in rising BTC price environments .