LAS VEGAS - CleanSpark Inc. (NASDAQ:CLSK), a sustainable bitcoin mining company, has reported substantial growth in its operations for the fiscal year ending September 30, 2024. The company's unaudited update reveals that it now holds over 8,000 self-mined bitcoin and has achieved significant increases in hashrate and operational capacity.
Over the past fiscal year, CleanSpark expanded its hashrate by 187%, reaching 27.6 EH/s, and increased its operational capacity by 132%, now operating at 552 megawatts across its wholly-owned sites. Despite the challenges posed by the bitcoin halving event, which typically reduces mining rewards by half, the company exceeded its bitcoin production from the previous fiscal year.
CEO Zach Bradford expressed gratitude toward the communities supporting the company's recovery efforts following Hurricane Helene, which temporarily impacted operations. CleanSpark's swift recovery included restoring power to all but 45 MW of its facilities and is expected to complete the restoration shortly.
CleanSpark's growth strategy involved diversifying its portfolio across three new states and completing multiple expansions at existing data centers. The company's share price reportedly increased by approximately 145% over the year.
In September alone, CleanSpark mined 493 bitcoins and sold 2.5 bitcoins at an average price of approximately $58,287 each. The month ended with an operating hashrate of 27.6 EH/s, despite the hurricane's impact resulting in an average hashrate of 23.4 EH/s for the month.
The company also provided updates on its expansion projects, including the energization of new phases in Georgia, the acquisition of bitcoin mining facilities in Tennessee, and the strategic decision not to renew its hosting agreement with Coinmint in New York. CleanSpark anticipates the completion of the acquisition of GRIID Infrastructure Inc. before the end of October 2024.
Looking ahead, CleanSpark expects to reach a hashrate of 30 EH/s in October and aims to surpass 50 EH/s in the fiscal year 2025. These updates are based on a press release statement by CleanSpark.
In other recent news, CleanSpark Inc. has announced the appointment of Brian Carson as its new Chief Accounting Officer, a strategic move that aligns with the company's long-term performance. The company's recent financial performance shows a significant turnaround, with Q2 revenue for fiscal year 2024 reaching a record-breaking $111.8 million, a 163% increase from the previous year. CleanSpark has also been active in mergers and acquisitions, recently adding seven Bitcoin mining facilities in Tennessee to its portfolio.
In terms of analyst ratings, Macquarie upgraded CleanSpark's stock to an Outperform rating, while H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings on the company's stock. These recent developments reflect CleanSpark's ongoing growth and strategic positioning in the Bitcoin mining sector.
CleanSpark's operations have shown resilience in the face of natural disasters, with the company safely restoring its operations following disruptions caused by Hurricane Helene. The company's current hashrate stands at approximately 22 EH/s and is expected to reach its standard operation rate of about 28 EH/s once all sites are fully powered.
InvestingPro Insights
CleanSpark's impressive operational growth aligns with several key financial metrics and insights from InvestingPro. The company's revenue growth of 140.89% over the last twelve months as of Q3 2024 reflects its substantial expansion in bitcoin mining capacity and hashrate. This growth trajectory is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
Despite the positive operational developments, CleanSpark's stock has experienced significant volatility. An InvestingPro Tip highlights that the stock has taken a big hit over the last week, with a 1-week price total return of -12.88%. This short-term decline contrasts with the company's longer-term performance, as another InvestingPro Tip notes a high return over the last year, corroborated by the impressive 153.31% 1-year price total return.
The company's financial health appears robust, with an InvestingPro Tip revealing that CleanSpark holds more cash than debt on its balance sheet. This strong liquidity position is crucial for funding ongoing expansion projects and navigating the cyclical nature of the bitcoin mining industry.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CleanSpark, providing deeper insights into the company's financial position and market performance. These additional tips can help investors make more informed decisions in light of CleanSpark's recent operational updates and future growth projections.
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