CleanSpark posts $29.3 million net loss and will exit the energy business

Quick Take

  • Bitcoin miner CleanSpark posted a net loss of $29.3 million and revenue of $31 million in the quarter ending in June.
  • The company announced on Tuesday that it is moving away from the energy business and becoming a “pure play bitcoin miner.”

Bitcoin miner CleanSpark posted a net loss of $29.3 million in the third quarter of its fiscal year ending in June, compared with a net loss $170,000 in the previous quarter.

The company is exiting energy business and is becoming "a pure play bitcoin miner," it said in its earnings report on Tuesday.

Mining represents 90% of the CleanSpark's revenue. It was, however, "spending a disproportionate time and working capital focused on a segment that provided 10% of revenue and resulted in negative cashflow," said CEO Zach Bradford. He also said that the company was still "pursuing the sale" and has not executed a final agreement.

In connection with the reclassification of its energy business as discontinued operations, CleanSpark recorded an impairment charge of $10.6 million.

CleanSpark had its most productive quarter yet in terms of bitcoin mined (964 BTC, a 7% increase over the previous quarter), but that was offset by the decline in bitcoin's value. The company brought in $31 million in revenue in the most recent quarter, down from $41.6 million in the previous quarter.

CleanSpark announced earlier today that it acquired a 36-megawatt mining facility in Georgia from vertically integrated bitcoin miner Waha Technologies for $16.2 million. The new site will add 1.1 exahash per second (EH/s) to the company's hash rate (a 38% increase) is set to grown up to 86 megawatts in 2023.

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