CleanSpark’s Bold Moves in 2023
CleanSpark, a notable contender in the Bitcoin mining sector, is setting its sights on acquiring distressed assets with unwavering confidence. In their latest fiscal Q1 earnings presentation, released on February 9, they projected optimism for the upcoming year, noting substantial growth and strategic expansions set in motion.
Explosive Growth and Active Acquisitions
The Chief Financial Officer, Gary Vecchiarelli, highlighted the company’s “explosive growth” over the past year. CleanSpark’s strategy revolves around mergers and acquisitions—perhaps a quirky romance of sorts, but much more financially savvy. They’ve been establishing themselves as one of the most active miners in the market, scooping up infrastructure and machines like it’s the end-of-season sale at your favorite store.
“We don’t feel compelled to go out and have to do M&A. But obviously, if we see a good deal, we’ll take advantage of that.” – Gary Vecchiarelli
The Market Landscape
With the mining sector resembling a tumultuous rollercoaster, smaller operations might be riding the downs more than ups. Vecchiarelli acknowledged potential challenges for these smaller miners. CleanSpark’s keen eye on the marketplace is all about seizing those opportunities—snatching up infrastructure and assets at bargain prices, much like a savvy shopper hunting for Black Friday deals.
Recent Acquisitions
CleanSpark’s acquisition prowess is well-demonstrated. Just last November, they snapped up over 3,840 Antminer S19J Pro machines at prices lower than market rate. A couple of months prior, they made headlines by acquiring Mawson’s Bitcoin mining facility for a cool $33 million, along with another facility for $16.2 million. They even went on a buying spree in the summer with thousands of Bitcoin miners at “substantially discounted prices” during a time the market felt a bit like a yard sale.
Plans for Expansion
2023 has already seen CleanSpark notably expanding operations, particularly in Georgia. A shiny new 50-megawatt Bitcoin mining facility in Washington is on track to be completed by late spring. If all goes well, expect to hear the buzz of servers and the sounds of ‘ka-ching’ as more BTC is mined.
Earnings Review
The fiscal Q1 report shines a light on CleanSpark’s progress, indicating they mined 1,531 BTC in one quarter—a whopping 132% increase from the previous year. However, revenue took a dip, experiencing a 25% decrease to $27.8 million, and adjusted EBITDA fell to $1.4 million. As they say, not every cloud has a silver lining, and this was an evident stormy day for overall revenue, resulting in a 5.2% stock drop to $3.13 in after-hours trading.
Looking Forward
Despite the choppy waters of the market, CleanSpark remains unfazed, holding true to its acquisition strategy and targeted growth plans. Any miner keeping a close eye on distressed assets might just want to watch this space!
