CleanSpark Releases March 2024 Bitcoin Mining Update

Rhea-AI Summary

CleanSpark Inc. (CLSK) reports record bitcoin mining results in March, with 806 bitcoin mined, a 24% increase from February, totaling 5,021 bitcoins. The company's operating hashrate exceeds 16 EH/s, with further growth expected. CleanSpark's bitcoin treasury now stands at over 5,000 bitcoins, coupled with a cash balance of $300 million, positioning them well for upcoming merger and acquisition opportunities in the industry.

Insights

Financial Analyst

The recent update from CleanSpark Inc. regarding its increased bitcoin mining output and substantial holdings reflects positively on the company's operational efficiency and growth strategy. A 24% month-over-month increase in mined bitcoin signifies improved productivity, likely driven by the expansion in Sandersville and acquisitions in Mississippi. The company's hashrate, a measure of computational power, surpassing 16 EH/s and approaching 17 EH/s, is a strong indicator of its competitive position in the mining sector.

From a financial perspective, the company's bitcoin treasury exceeding 5,000 units alongside a cash balance of over $300 million provides a robust foundation for future growth and potential mergers and acquisitions. This capital reserve positions CleanSpark aggressively in a consolidating market, potentially leading to increased shareholder value. However, the bitcoin market's volatility and the upcoming 'halving' event, which will reduce mining rewards, present risks that need to be managed strategically.

Market Research Analyst

The cryptocurrency mining industry is facing a pivotal moment with the approaching bitcoin 'halving,' which historically impacts mining profitability. CleanSpark's proactive measures, such as fully funding the purchase of new mining rigs and planning for post-halving operations, demonstrate strategic foresight. The company's emphasis on energy efficiency is also noteworthy, as it aligns with broader market trends prioritizing sustainability.

The market should also consider the implications of CleanSpark's ambitious target of reaching 50 EH/s. If achieved, this would significantly enhance their mining capacity, potentially increasing their market share. However, investors should be aware of the sector's inherent risks, including regulatory challenges and fluctuating cryptocurrency prices, which could affect the company's performance and the industry's outlook.

Energy Sector Analyst

CleanSpark's focus on energy efficiency is a critical aspect of their operations, particularly in an industry scrutinized for its environmental impact. The company's efforts to maintain an energy-efficient bitcoin mining fleet may provide a competitive edge, especially as global sentiment shifts towards sustainable practices. The energization of the Dalton site, with 15 megawatts of power, reflects the company's expansion strategy and commitment to scaling operations responsibly.

Investors should monitor CleanSpark's energy management closely, as it could lead to operational cost savings and align with potential regulatory changes favoring green initiatives. The company's ability to scale while maintaining energy efficiency will be a key factor in its long-term success and attractiveness to environmentally conscious investors.

The Company mined 806 bitcoin in March, up 24% from February; total bitcoin holdings now at 5,021

LAS VEGAS, April 1, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner™, today released its unaudited bitcoin mining and operations update for the month ending March 31, 2024.

"March results were the pay-off for our hard work and tremendous growth over the last few months as it was the first full month with the Sandersville expansion and our newly acquired sites in Mississippi online, bringing our entire operating hashrate to over 16 EH/s, with 17 EH/s imminent. The result was a record amount of bitcoin mined in the last full month before halving," said Zach Bradford, CEO. "I'm also pleased to report that our bitcoin treasury has grown to over 5,000 bitcoin. Pair that with our current cash balance of over $300 million and we are well on our way to taking advantage of what we expect to be one of the most active merger and acquisition seasons ever experienced in our industry.

"With the capital on hand we have now fully funded the remaining payments of all 160,000 S21s that we announced in January. We are prepared to thrive post-halving. We are now looking beyond halving and expect to be highly active over the coming months given that we have the balance sheet and capital tools to make us one of the most aggressive acquirers in the industry.

"Opportunities are prevalent, and we believe the consolidation prospects, which have been discussed abundantly throughout the industry for some time, are more relevant than ever before. Being prepared to act on the opportunities that meet the CleanSpark standard will be our focus for the balance of the year. We now have all the tools in place to be best positioned for action. We look forward to sharing more in the coming weeks and months as we continue our extraordinary journey to 50 EH/s while maintaining one of the most energy efficient bitcoin mining fleets in the world."  

March Bitcoin Mining Update (unaudited)

• Bitcoin mined in March: 806
• CY2024 bitcoin mined: 2,031
• Total bitcoin holdings as of March 31: 5,021
• Total bitcoin sold in March: 3.37
• Deployed fleet: 133,963
• Month-end fleet efficiency: 24.63
• Current hashrate: 16.4

The Company sold 3.37 bitcoin in March 2024 at an average of approximately $58,800 per bitcoin. March daily bitcoin mined averaged 26 and reached a high of 28.14.

Operational Update

Dalton energization.
Construction of the Company's recent Dalton acquisition is nearing completion. Fifteen megawatts of power are scheduled to be turned on early this week; we expect to promptly begin racking miners upon energization. Once miners are racked, this site will bring CleanSpark's operating hashrate to over 17 EH/s. It is expected to be fully operational on or before April 12. This site marks the first step of adding 3 EH/s in the coming quarter to reach 20 EH/s.

About CleanSpark

CleanSpark (Nasdaq: CLSK) is America's Bitcoin Miner™. We own and operate data centers that primarily run on low-carbon power. Our infrastructure responsibly supports Bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. We cultivate trust and transparency among our employees and the communities we operate in. Visit our website at www.cleanspark.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: anticipated additions to CleanSpark's hashrate and the timing thereof; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company's prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law.

Investor Relations Contact 
Brittany Moore
702-989-7693
ir@cleanspark.com 

Media Contact
Eleni Stylianou
702-989-7694                                          
pr@cleanspark.com      

 

                                                 

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SOURCE CleanSpark, Inc.

FAQ

How many bitcoins did CleanSpark mine in March 2024?

CleanSpark mined 806 bitcoins in March 2024.

What is CleanSpark's total bitcoin holdings as of March 31?

CleanSpark's total bitcoin holdings as of March 31 are 5,021 bitcoins.

What was the average price of bitcoin sold by CleanSpark in March 2024?

CleanSpark sold bitcoin in March 2024 at an average price of approximately $58,800 per bitcoin.

What is CleanSpark's current operating hashrate?

CleanSpark's current operating hashrate is 16.4 EH/s.

When is CleanSpark's Dalton acquisition expected to be fully operational?

CleanSpark's Dalton acquisition is expected to be fully operational on or before April 12.

How much power is scheduled to be turned on at CleanSpark's Dalton acquisition?

Fifteen megawatts of power are scheduled to be turned on at CleanSpark's Dalton acquisition.

What is CleanSpark's goal for their operating hashrate in the coming quarter?

CleanSpark aims to add 3 EH/s in the coming quarter to reach 20 EH/s.