CleanSpark stock slides 9% as quarterly earnings miss estimates on bitcoin holdings loss
CleanSpark reported a net loss of $378.3 million for the quarter ending on March 31, a steep increase from the $138.8 million loss reported the same period last year.
What to know:
- CleanSpark (CLSK) stock fell over 9.4% in pre-market trading on Tuesday after the U.S. bitcoin (BTC) mining company reported a widening net loss of $378.3 million for its second fiscal quarter.
- Quarterly revenue dropped 25 percent year-over-year to $136.4 million even as the company doubled its megawatts under contract and began shifting its infrastructure toward AI and high-performance computing uses.
- Despite industry-wide pressure from bitcoin mining costs that exceed the current bitcoin price, CleanSpark highlighted a stronger balance sheet, with bitcoin holdings up 14 percent to $925.2 million, total assets of $2.9 billion and long-term debt of $1.8 billion.
The firm’s bottom-hit was mainly driven by a $224.1 million non-cash bitcoin fair value loss, reflecting market volatility.
Quarterly revenue reached $136.4 million, down 25% from $181.7 million year-over-year, the report revealed, missing estimates of $154.3 million.
Despite the dip, CleanSpark expanded its infrastructure, doubling its megawatts (MW) under contract. CEO Matt Schutz said the company is pivoting to commercializing “AI/HPC-applicable assets,” joining a sector-wide shift toward leasing their computing power as AI data centers.
CFO Gary Vecchiarelly cited the firm’s balance sheet as a “competitive advantage, reporting a bitcoin holdings increase of 14% to $925.2 million in respects to last year. Total cash is $260.3 million, while total assets now sit at $2.9 billion with a long-term debt of $1.8 billion.
