CleanSpark reports disappointing earnings for FY24 with significant losses
- CleanSpark Inc reported fourth-quarter and full-year results with revenues significantly below analyst expectations.
- The company demonstrated a year-over-year revenue growth of 125%, ending the quarter with 8,049 Bitcoin and $122.2 million in cash.
- Despite the disappointing earnings, CleanSpark’s leadership expressed optimism about future growth and operational scale as they prepare for a potential bull market.
CleanSpark Inc, a prominent Bitcoin mining company based in the United States, released its financial results for fiscal year 2024 on December 2, 2024. The company reported a total revenue of $378.97 million, which fell short of analyst estimates that predicted revenue of $397.32 million. Additionally, CleanSpark encountered a full-year adjusted loss of 69 cents per share, again missing the consensus estimate of a loss of 62 cents per share according to Benzinga Pro. Despite these disappointing earnings, the company indicated a significant year-over-year revenue increase of 125%, signaling growth despite the challenges faced. CleanSpark's CEO, Zach Bradford, highlighted the company's sustained growth trajectory and solidified status as one of the top Bitcoin miners globally, especially as they anticipate a new bull market. The company ended the quarter with a Bitcoin inventory of 8,049 and cash reserves amounting to $122.2 million. Bradford mentioned the company’s proactive approach, having added 423 megawatts (MWs) to its operating portfolio, bringing the total to 726 MW. He expressed optimism about future opportunities for mergers and acquisitions (M&A) paired with organic growth. Moreover, CleanSpark’s hashrate grew to 33.5 EH/s, with projections to reach 37 EH/s by the end of the year and aspirations for 50 EH/s and beyond in 2025. CFO Gary Vecchiarelli echoed similar sentiments by highlighting the company’s financial strength, emphasizing their healthy balance sheet, industry-leading operations, and strong liquidity position as essential components for pursuing diverse capital-raising strategies as they move into fiscal year 2025. During a conference call with analysts and investors, which occurred after the earnings announcement at 4:30 p.m. ET on the same day, management discussed their financial strategy and operational successes. The stock performance showed a slight decline in after-hours trading, indicating some investor concern, while clean energy initiatives and market positioning remained a priority for future growth plans. The company’s mixed earnings report illustrates the challenges that Bitcoin mining companies can face amid fluctuating market prices and operational costs, yet CleanSpark continues to demonstrate a robust balance sheet and operational expansion plans for the future.