CleanSpark , Inc. (NASDAQ:CLSK), a Nevada-based financial services company, has amended its Articles of Incorporation to increase its authorized common stock. The company announced on Tuesday that it has doubled the number of authorized shares of common stock from 300 million to 600 million. This decision was made following the approval from its stockholders during a special meeting held on Monday.
The amendment to the Articles of Incorporation was filed with the Secretary of State for the State of Nevada and took effect immediately upon filing. CleanSpark's stockholders, who were entitled to vote at the special meeting, showed overwhelming support for the proposal with 1,028,842,994 votes for the increase, 192,134,253 votes against, and 830,316 abstained.
The special meeting, which took place on October 25, 2024, was convened to address this specific amendment. The proxy statement for the meeting was filed with the Securities and Exchange Commission on September 9, 2024.
On the record date of September 6, 2024, CleanSpark had 253,136,198 shares of common stock, 1,750,000 shares of Series A Preferred Stock, and 1,000,000 shares of Series X Preferred Stock issued and outstanding. The Series X Preferred Stock's votes were cast in proportion to the votes of the common and Series A preferred stockholders, excluding abstentions and broker non-votes.
The approval of the amendment required a majority vote from the holders of the company's capital stock. The increase in authorized shares is a strategic move that could potentially provide CleanSpark with the flexibility for future corporate endeavors, including but not limited to, financing activities, stock splits, and acquisitions.
The information provided in this article is based on a press release statement and the recent SEC filing by CleanSpark, Inc.
In other recent news, CleanSpark, Inc. has made several significant advancements. The company reported a record-breaking Q2 revenue for fiscal year 2024 of $111.8 million and has successfully increased its operational hashrate to 30 exahashes per second (EH/s), a 200% surge since October 2023.
This growth was supported by organic expansion, strategic acquisitions, and a fleet upgrade that improved efficiency by nearly 20%.
CleanSpark also announced the termination of its mining services agreement with Coinmint, indicating a strategic shift in operations.
On the acquisition front, the company added seven Bitcoin mining facilities in Tennessee to its portfolio. Despite disruptions from Hurricane Helene, CleanSpark promptly resumed operations, maintaining an operational hashrate of 28.7 EH/s.
In response to these developments, analysts at Macquarie upgraded CleanSpark's stock to an Outperform rating. Other firms such as H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings. Furthermore, CleanSpark promoted Brian Carson to the position of Chief Accounting Officer, bolstering its financial management.
These are the recent developments in CleanSpark's operations and strategic direction.
InvestingPro Insights
CleanSpark's decision to double its authorized shares aligns with its current growth trajectory and future potential. According to InvestingPro data, the company has demonstrated impressive revenue growth, with a 140.89% increase in the last twelve months as of Q3 2024. This robust growth is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
The increase in authorized shares could be strategic for CleanSpark's expansion plans, especially considering that the company holds more cash than debt on its balance sheet, as noted by another InvestingPro Tip. This financial flexibility, combined with the expanded share authorization, positions CleanSpark well for potential acquisitions or capital-intensive projects.
However, investors should be aware that CleanSpark's stock price movements are quite volatile, as highlighted by an InvestingPro Tip. This volatility is reflected in the company's price performance, with a strong 202.41% return over the last year, but a -30.74% return over the past six months.
For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for CleanSpark, providing deeper insights into the company's financial health and market position.
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