Group 1 - CleanSpark (NASDAQ: CLSK) shares were upgraded from 'hold' to 'buy' in October after a cautious outlook for most of 2024 [1] - CLSK experienced significant growth in 2023 after reaching a low point in December 2022 [1]

Core Insights - CleanSpark Inc. achieved significant growth in bitcoin mining, producing 668 bitcoin in December 2024 and a total of 7,024 bitcoin for the year [1][8] - The company reported a 287.9% increase in hashrate and a 33.3% improvement in efficiency year-over-year, reaching an operational hashrate of 39.1 EH/s and fleet efficiency of 17.59 J/Th by year-end [2][8] Mining Operations - In December 2024, CleanSpark's average hashrate was 35.52 EH/s, with an average of 21.56 bitcoin mined daily, peaking at 22.46 bitcoin in a single day [4] - The company sold 12.65 bitcoin in December at an average price of approximately $101,246 per bitcoin [4] Financial Updates - CleanSpark successfully closed a $650 million zero-coupon convertible bond offering in December to support its growth strategy, including reaching a target of 50 EH/s [5][2] - The company has a total of 9,952 bitcoin holdings as of December 31, 2024 [8] Expansion and Infrastructure - CleanSpark expanded its operations into three new states: Mississippi, Tennessee, and Wyoming, with multiple site expansions completed [2] - The Jackson, Tennessee site has an initial 12 MW of S21 XP Immersion miners, with a second phase adding 48 MW [6] - In Cheyenne, Wyoming, the company is constructing 75 MW of immersion-cooled bitcoin mining data centers, expected to contribute 5 EH/s upon completion [7]

Core Insights - CleanSpark has achieved an operating hashrate of 37.5 EH/s, exceeding its previous year-end target of 37 EH/s, with a fleet efficiency of 17.7 J/Th [3][4][8] - The company has accelerated its guidance for reaching 50 EH/s, now expected in the first half of 2025, supported by a recent $650 million zero-coupon convertible bond offering [5][8] - CleanSpark's bitcoin treasury balance is approaching 10,000 bitcoin, all of which have been mined by the company [5] Financial Performance - The company reported a nearly 300% increase in hashrate since the beginning of 2024 [4] - December has been highlighted as one of CleanSpark's strongest strategic months, with the capital raised expected to fully fund the expansion to 50 EH/s [5] Strategic Growth - The recent energization of new data centers in Tennessee and Wyoming is part of a multistage process aimed at increasing hashrate and fleet efficiency [8] - The growth strategy includes a mix of greenfield infrastructure development, organic growth through existing site expansion, and strategic mergers and acquisitions, all funded by the recent capital raise [8] Operational Excellence - CleanSpark operates a portfolio of mining facilities across the United States, leveraging globally competitive energy prices to optimize mining operations [9] - The company emphasizes its focus on bitcoin mining and operational excellence to deliver superior returns to shareholders [9]

Offering Details - CleanSpark completed a $650 million offering of 0.00% Convertible Senior Notes due 2030, including $100 million from the initial purchasers' full exercise of their option to buy additional notes [1] - The net proceeds to the company were approximately $633.6 million after deducting initial purchasers' discounts and estimated expenses [5] Use of Proceeds - Approximately $90.4 million of the net proceeds were used to pay for capped call transactions [5] - Approximately $145.0 million was used to repurchase 11.76 million shares of common stock [4][5] - The remaining proceeds will be used for repaying the company's line of credit with Coinbase, capital expenditures, potential acquisitions, and general corporate purposes [5] Capped Call Transactions - The company entered into capped call transactions with a cap price of $24.66 per share, representing a 100% premium over the December 12, 2024 closing price of $12.33 [3] - These transactions are expected to reduce potential dilution to common stock upon conversion of the Convertible Notes and offset potential cash payments in excess of the principal amount [3] Share Repurchase and Dilution Impact - The company repurchased 11.76 million shares for approximately $145 million, which will be removed from the outstanding share count [4] - The company will not have to issue additional shares (on a net basis) until the price of its common stock exceeds $33.67, considering the benefits of the capped call and share repurchase [4] Strategic Implications - The offering is expected to fully fund the company's growth through 50 EH/s and beyond [5] - The company plans to continue adding mined Bitcoin to its balance sheet and remains well-positioned for opportunistic acquisitions [5] - The offering provides greater clarity on near-term share count, with no immediate plans for another equity or equity-linked offering [5] Company Overview - CleanSpark is a market-leading, pure-play Bitcoin miner with a portfolio of mining facilities across the United States [8] - The company focuses on operational excellence, capital stewardship, and monetizing low-cost, high-reliability energy to secure Bitcoin [8]

Core Viewpoint - CleanSpark, Inc. has announced a $550 million offering of 0.00% Convertible Senior Notes due 2030, aimed at qualified institutional buyers, with the offering expected to close on December 17, 2024 [1][2]. Group 1: Transaction Details - The offering consists of $550 million in Convertible Senior Notes with a 20.00% conversion premium [2]. - The initial cap price for capped call transactions is set at $24.66 per share, representing a 100% premium to the common stock's closing price of $12.33 on December 12, 2024 [2][8]. - CleanSpark plans to repurchase approximately $145 million of its common stock from investors in the Convertible Notes [2][11]. - The initial purchasers have a 13-day option to buy an additional $100 million in Convertible Notes [2]. Group 2: Use of Proceeds - The net proceeds from the offering are expected to be approximately $535.9 million, or $633.6 million if the additional option is fully exercised [3]. - Approximately $76.5 million will be allocated to the capped call transactions, $145 million for share repurchases, and the remaining funds for repaying amounts under the line of credit with Coinbase, capital expenditures, acquisitions, and general corporate purposes [3]. Group 3: Convertible Notes Characteristics - The Convertible Notes will be senior unsecured obligations, maturing on June 15, 2030, and will not bear regular interest [4]. - The initial conversion rate is set at 67.5858 shares per $1,000 principal amount, equating to an initial conversion price of approximately $14.80 per share [5]. - The Company may redeem the Convertible Notes starting June 20, 2028, under specific conditions [6]. Group 4: Capped Call Transactions - Capped call transactions are designed to reduce potential dilution upon conversion of the Convertible Notes [9]. - The cap price for these transactions is initially set at $24.66 per share, with customary anti-dilution adjustments [8]. - The Company anticipates that the option counterparties may engage in market activities that could influence the stock price around the pricing of the Convertible Notes [10].

Core Viewpoint - CleanSpark, Inc. plans to offer $550 million in convertible senior notes due 2030, subject to market conditions, to qualified institutional buyers [1][10] Group 1: Offering Details - The company may grant initial purchasers an option to buy an additional $100 million of the convertible notes within 13 days of the initial issuance [2] - The convertible notes will be senior unsecured obligations, maturing on June 15, 2030, and will not bear regular interest [4] - The notes will be convertible into cash, shares of common stock, or a combination, with terms determined at pricing [5] Group 2: Use of Proceeds - Net proceeds will be used for capped call transactions, repurchasing up to $125 million of common stock, and repaying amounts under the line of credit with Coinbase, among other corporate purposes [3] Group 3: Capped Call Transactions - The company expects to enter into capped call transactions to reduce potential dilution upon conversion of the notes [6][7] - Initial hedging activities related to the capped call transactions may influence the market price of the common stock and convertible notes [8] Group 4: Share Repurchase - The company plans to repurchase shares of its common stock from certain investors in the convertible notes at the closing price on the pricing date [9]

CleanSpark ((CLSK) is a $4 billion technology enterprise that call's itself "America's Bitcoin Miner."I ran a year-to-date look at CLSK shares vs some other prominent miners. While CLSK is up nearly 20%, the big dog Marathon Digital ((MARA) is flat for the year, despite their big Bitcoin acquisitions.Meanwhile Iris Energy ((IREN) is up over 90% while Riot Platforms ((RIOT) is down over 20%.Here's how CleanSpark describes their mission...CleanSpark responsibly develops infrastructure for Bitcoin, an essentia ...

CleanSpark Inc CLSK shares were down on Tuesday, even after the company reported upbeat fourth-quarter results.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.HC Wainwright On CleanSparkAnalyst Mike Colonnese reiterated a Buy rating and price target of $27.CleanSpark, a Bitcoin mining company that offers investors "pure-play exposure" to the world's largest crypto, reported "solid" results for the fourth quarter and fiscal 2024, Colonnese said in a note ...

Mining Operations - As of September 30, 2024, CleanSpark operated approximately 188,500 bitcoin mining machines with a hashrate capacity of approximately 27.6 EH/s, and mined 7,092 bitcoins in fiscal year 2024, a 3% increase from 6,903 bitcoins in fiscal year 2023[22] - The company has developed a total of 656 MW of operational capacity across its facilities, supporting a total operational hashrate of 27.6 EH/s, with significant contributions from Georgia (483 MW, 20.6 EH/s) and Tennessee (79 MW, 3.5 EH/s)[31] - CleanSpark plans to develop an additional 211.5 MW of capacity, expected to support approximately 50 EH/s of mining capacity, enhancing its operational efficiency[21] - CleanSpark's mining operations are primarily powered by renewable energy sources, although the energy mix has shifted due to expansion efforts, now including both non-carbon and carbon sources[36] - CleanSpark's mining operations are geographically distributed across Georgia, Tennessee, Mississippi, and Wyoming, with ongoing construction in Wyoming expected to be operational in fiscal year 2025[30] - The company has shifted its focus exclusively to bitcoin mining operations, having deemed its energy operations as discontinued as of June 30, 2022[48] - The company no longer provides traditional data center services, with all capacity now dedicated to bitcoin mining activities as of September 30, 2023[49] - The company has terminated its hosting arrangement with GRIID Infrastructure, Inc. following its acquisition on October 30, 2024, integrating the 54 MW into its owned facilities[176] Financial Performance - The company has sustained cumulative net losses of $479,218 since inception through September 30, 2024, with a net loss from continuing operations of $145,777 for the fiscal year ended September 30, 2024[60] - The company has historically sold bitcoin to support operations and strategic growth, with management decisions influenced by market conditions and volatility[24] - Bitcoin mining revenue for the year ended September 30, 2024, was $378,968, an increase of $210,847 or 125% compared to $168,121 for the year ended September 30, 2023[197] - The net loss for the year ended September 30, 2024, was $145,777, an increase of $7,628 compared to a net loss of $138,148 for the year ended September 30, 2023[212] - Total bitcoin mining revenue from owned facilities reached $333,187,000 in 2024, compared to $127,827,000 in 2023, reflecting a 160.5% increase[1] - The cost of mining one bitcoin increased to $38,766 in 2024 from $21,362 in 2023, representing an 81.8% increase year-over-year[1] - Average revenue per bitcoin mined rose to $53,708 in 2024, up from $24,601 in 2023, marking a 118.5% increase[1] Operational Challenges - The company is subject to various risks, including potential changes in laws and regulations applicable to bitcoin mining and the possibility of increased compliance costs[56] - The company operates in a highly competitive bitcoin mining market, facing challenges in acquiring new miners and securing low-cost electricity[62] - The reliance on a limited number of suppliers for mining equipment poses risks, as any disruption could delay expansion efforts[64] - The company has faced supply chain disruptions due to inflation and labor shortages, which could impact expansion and acquisition timelines[68] - The company may require additional financing for operations and expansion, which may not be available on favorable terms[71] - The company may experience reduced mining rewards if the mining pool fails to accurately distribute rewards, impacting overall business operations[79] Regulatory and Compliance Issues - The company has a non-renewal agreement with Coinmint for hosting services, set to expire on January 1, 2025, after which all operational capacity will be moved to wholly owned sites[25] - The company has terminated its agreement with a hosting facility in New York and will cease co-location activities in the state after January 1, 2025, due to regulatory concerns[40] - Regulatory changes could require the company to register as a money services business (MSB), incurring significant compliance costs[126] - Future regulatory developments regarding bitcoin could impose additional compliance costs, potentially impacting the company's financial condition[130] - Increased scrutiny regarding ESG practices may lead to additional costs and operational risks for the company[109] Risk Factors - The company may face significant risks from market disruptions, including price volatility and loss of confidence in digital assets, following the bankruptcies of major players like FTX[90] - The company relies on Coinbase for bitcoin custody, and any loss or destruction of bitcoins may not be recoverable, posing a risk to financial stability[93] - Security breaches could lead to loss of bitcoin holdings and damage to the company's reputation, adversely affecting investments[97] - The company does not maintain its own insurance coverage for its bitcoin holdings, which are held in custody by Coinbase, exposing it to potential losses[123] - The treatment of bitcoin held in custody during a custodian's bankruptcy is uncertain, posing risks to asset recovery[112] Staffing and Management - As of September 30, 2024, the company employed 270 staff members, with 256 being full-time[45] - The management team is critical to the company's success, and any loss of key personnel could adversely affect operations and growth prospects[65] - Significant costs are incurred due to compliance with public company laws and regulations, impacting management and accounting resources[153] Strategic Growth and Acquisitions - The company has a strategic focus on expanding its infrastructure through both organic growth and acquisitions, including the recent acquisition of GRIID, which added three Tennessee locations to its portfolio[29] - Recent strategic acquisitions in Georgia, Mississippi, Wyoming, and Tennessee are part of the company's growth strategy, but future acquisitions may dilute stockholder ownership[67] - The company aims to continue increasing its computing power through infrastructure expansion and strategic acquisitions[177] Energy and Cost Management - Energy expenses accounted for 39.7% of bitcoin mining revenues in 2024, down from 51.5% in 2023, indicating improved cost management[1] - Total energy expense for owned facilities was $132,192,000 in 2024, up from $65,824,000 in 2023, a 100% increase[1] - The average cost per KWH utilized in owned facilities was $0.046 in 2024, slightly down from $0.048 in 2023[1] Cybersecurity and Data Management - The cybersecurity program is aligned with the National Institute of Standards and Technology Cybersecurity Framework 2.0, aimed at managing data confidentiality and integrity[159] - The Board of Directors oversees the management of cybersecurity risk through its audit committee and the IT Steering and Risk Committee[160]

Mines 622 bitcoin and achieves daily production high of over 21 bitcoinIncreases hashrate and efficiency month over month by over 7% and 6% respectivelyLAS VEGAS, Dec. 3, 2024 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner® (the "Company"), today released its unaudited bitcoin mining and operations update for the month ending November 30, 2024."Our teams have been relentlessly executing, making progress towards our year-end hashrate goal of 37 EH/s while improving our efficiency," s ...