CleanSpark Surges in Earnings and Revenue, Driven by Bitcoin Price Rebound and Expansion
On Thursday, CleanSpark experienced a significant increase in earnings and revenue, driving its Bitcoin mining operations. The price of Bitcoin also saw a slight rebound on the day, ending a four-day streak of declines.
CleanSpark reported earnings of 58 cents per share, a major improvement from a loss of 23 cents per share the previous year. FactSet analysts had predicted earnings of just 7 cents per share. Additionally, revenue surged by 163% to $11.8 million, exceeding expectations and marking the third consecutive quarter of triple-digit growth.
During the quarter, CleanSpark expanded its operational capacity by over 60%, leading to the revenue growth according to CEO Zach Bradford. Margins also increased compared to the first quarter due to the rise in Bitcoin prices. At the end of the quarter, the company had $358 million in Bitcoin and $323.1 million in cash.
In terms of stock performance, CLSK stock initially surged by 6% and settled for a 1.3% gain on Thursday, closing just below its 10-day line. Shares continued to rise by 1.6% in after-hours trading. Despite a decline from its March 27 high, shares of CleanSpark are up more than 50% year-to-date.
As for Bitcoin, the cryptocurrency saw a slight rebound on Thursday with an increase of approximately 4%. However, it is still down about 15% from its March record high close to $74,000.
CleanSpark has also announced plans to purchase two Bitcoin mining locations in Wyoming with 75 megawatts of power for $18.75 million in cash
