CleanSpark gains over 30% amid Bitcoin surges and earning results 📌

CleanSpark (CLSK.US) is gaining almost 30% driven by Bitcoin surges and the company’s recent earning results. CleanSpark has reported impressive financial results for the first quarter of FY2024, ended December 31, 2023. The company has achieved a substantial year-over-year revenue growth of 165%, bringing in $73.8 million, up from $27.8 million in the same period last year. 

Key Financial Metrics:

• Revenue: $73.8 million
• Net Income: $25.9 million
• Adjusted EBITDA: $69.1 million
• Total Current Assets: $181.7 million
• Total Mining Assets: $484.0 million
• Total Assets: $862.7 million
• Current Liabilities: $42.4 million
• Total Liabilities: $52.2 million
• Debt: $14.5 million

CleanSpark focuses on operating data centers for Bitcoin mining, primarily using low-carbon power.

Company recent announcements:

• CleanSpark is expanding its operations with significant acquisitions in Mississippi and Georgia. The company has entered definitive agreements to acquire three turnkey bitcoin mining facilities in Mississippi for $19.8 million.

• Company is also expanding in Dalton by acquiring a third mining facility currently under construction for an initial payment of $3.4 million. The company plans to invest another $3.5 million to complete this facility, aiming for operational readiness by April 2024.

Company key January results (unaudited):

• Bitcoin mined in January: 577
• Total bitcoin holdings as of January 31: 3,573
• Total bitcoin sold in January: 6.4, with proceeds of approximately $286,000
• Average daily bitcoin mined: 18.6, with a peak of 21.9

The correlation between the gains in the price of Bitcoin and mine revenues is evident. Assuming Bitcoin remains in an uptrend this year, the prospects for the company are promising.

CleanSpark's shares price are closely correlated with Bitcoin's price. We have already seen this during the 2021 bull market. Source: xStation 5