CleanSpark’s Financial Performance Analysis

CleanSpark delivered an outstanding financial quarter, but its market performance didn’t reflect the same strength. This analysis breaks down key financials, operational insights, and strategic directions to understand the full picture.

Executive Overview: Strong Execution Amid Market Ambivalence

The following guest post comes from Bitcoinminingstock.io, the one-stop hub for all things bitcoin mining stocks, educational tools, and industry insights. Originally published on Feb. 20, 2025, it was penned by Bitcoinminingstock.io author Cindy Feng.

While doing research for my Bitcoin Mining Annual Report back in December 2024, CleanSpark stood out with multiple key metrics, such as gross margin, hash rate expansion, M&A activities, and fleet upgrades. At that time, I believed the company was positioned for a strong year ahead—assuming Bitcoin’s price continued its upward momentum.

However, following CleanSpark’s fiscal Q1 2025 earnings call on February 6, 2025, the company’s stock price remained flat and even declined. This market reaction raised some questions: What numbers surprised investors? Did the company provide guidance that concerned investors? Let’s take a closer look at the numbers.

Financial Highlights: Revenue & Profitability Surged

CleanSpark’s fiscal Q1 2025 (Oct 1 – Dec 31, 2024) was an outstanding quarter financially, demonstrating robust revenue growth and strong profitability, driven by Bitcoin’s price increase and improved operational efficiency.

Key Income Statement Metrics:

• Revenue: $162.3 million (+120% YoY) vs. $73.8 million in Q1 2024.
• Net Income: $246.8 million (+854% YoY) vs. $25.9 million in Q1 2024.
• Adjusted EBITDA: $321.6 million from $69.1 million.
• Gross Margin: 57%, slightly lower than 60% YoY.
• Bitcoin Production: 1,945 BTC, down slightly from 2,020 BTC in Q1 2024.

Key Balance Sheet Metrics

• Total Assets: $2.78 billion (+41.6% YoY).
• Total Current Liabilities: $96.7 million dropped from $187.9 million.
• Long-term Liabilities: $641.4 million.
• Stockholders’ Equity: $2.02 billion (+14.8% YoY).
• D/E ratio: 0.32, indicating increased leverage.

Key Cash Flow Metrics

• Operating Cash Flow: $119.5 million net cash used in operations.
• Investing Cash Flow: $255.9 million used.
• Financing Cash Flow: $531.1 million inflows.

Valuation Metrics & Enterprise Value

CleanSpark’s market cap currently stands at $2.61 billion. I compiled a few key financial metrics:

• Enterprise Value (EV): $2.16 billion.
• EV/EBITDA Ratio: 6.71x.
• P/E Ratio: 10.57x.
• BTC Holding as % of Market Cap: 35.6%.

Operational Metrics: Hash Rate Growth & Efficiency Improvement

Key Hash Rate & Efficiency Metrics:

• Hash Rate: 39.1 EH/s, a 4x increase YoY.
• Operating miners: 201,808 in operation.
• Average Efficiency: 17.6 W/TH.
• Bitcoin Production Cost: $34,011.

Energy Cost Analysis & Mitigation Strategies

• Power rate: $0.049/KWh.
• 40.4% of Bitcoin revenue is used for energy costs.
• Energy Mitigation Strategies: Geographic expansion, high-efficiency mining rigs.

Bitcoin Holding & Treasury Strategy: HODL Over Sell

• Total Bitcoin Held: 9,952 BTC, valued at $929 million.
• BTC Sold During the Quarter: 3,413 BTC worth $3.4 million.
• Funding Operations: Relied on external financing instead of BTC sales.

Expansion & M&A: Scaling Up for 50 EH/s

• Goal: 50 EH/s by mid-2025.
• New Mining Sites Acquired: Tennessee and Mississippi.
• Fleet Growth: 60,000 S21 miners secured.

Conclusion: The Big Picture & Key Considerations

CleanSpark holds a strong position in the Bitcoin mining sector. Its success is correlated with Bitcoin’s performance. The company’s commitment to Bitcoin mining, disciplined capital management, and ambitious expansion plans keep it attractive despite market fluctuations.