The following is a summary of the CleanSpark, Inc. (CLSK) Q4 2024 Earnings Call Transcript:

Financial Performance:

• CleanSpark reported an annual revenue of $378.9 million, marking an increase of approximately $210.6 million or 125% from the previous year, driven primarily by increased Bitcoin production and rising Bitcoin prices.

• The gross profit for the year was $213.5 million, an increase of approximately $138.6 million or 185% over the previous year, benefitting from higher Bitcoin prices and lower energy costs.

• Despite these gains, the GAAP net loss for the year was approximately $145.8 million due to a substantial non-cash impairment expense of $197 million.

• Adjusted EBITDA for the year reached $245.8 million, significantly higher than the previous year's $25 million, aided by new accounting standards that marked the Bitcoin balance to market.

Business Progress:

• CleanSpark's operational hash rate significantly increased to over 33 exahash per second, with a projected milestone of 37 exahash per second within the month.

• The company added over 425 megawatts to its operational power capacity, bringing the total to over 726 megawatts.

• CleanSpark continued to emphasize an 'infrastructure-first' approach, optimizing operations through advanced technology upgrades and rigorous standards for new facilities.

• Strategic growth was achieved through greenfield development, organic expansion, and opportunistic acquisitions, including the recent acquisition of Grid Infrastructure with additional expansion potential.

• The company forecasted surpassing 50 exahash in 2025, aiming to further grow and expand operations sustainably.

Opportunities:

• CleanSpark's focus on Bitcoin mining leverages the finite supply of Bitcoin, favoring this strategy over diversifying into AI or high-performance computing to prioritize near-term, high margin revenue opportunities.

• The company is prepared to increase installed hash rate, boosting monthly Bitcoin production while exploring diverse financial strategies to optimize returns for shareholders.

Risks:

• The variability in ASIC pricing and procurement may pose a risk, although the company has secured price certainty for a significant portion of its future needs.

• CleanSpark faces potential challenges from tariffs affecting hardware imports, which could impact cost structures unpredictably.

• Environmental and operational risks, such as severe weather events, have previously impacted operations but were managed without asset loss.

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