CleanSpark, a company engaged in Bitcoin mining, saw its stock experience a notable surge in value on Thursday following the release of its quarterly earnings report, which exceeded analyst expectations by a substantial margin. This surge in CleanSpark’s stock value was primarily driven by the resurgence in Bitcoin prices, which rebounded slightly after a four-day decline.
In terms of its financial performance, CleanSpark reported earnings of 58 cents per share, marking a significant improvement from the loss of 23 cents per share recorded in the corresponding period the previous year. This impressive earnings beat surpassed the 7 cents per share projected by FactSet analysts. Additionally, the company reported a remarkable 163% increase in revenue, reaching $11.8 million for the quarter. This revenue surge marked the third consecutive quarter of triple-digit revenue growth for CleanSpark.
CleanSpark attributed its revenue growth to a substantial increase in operational capacity, which expanded by over 60% during the quarter. CEO Zach Bradford emphasized the role of rising Bitcoin prices in driving margin expansion, thereby contributing to the company’s robust financial performance.
At the close of the quarter, CleanSpark held digital assets worth $358 million in Bitcoin and maintained $323.1 million in cash, reflecting its strategic allocation of resources in digital assets and liquidity management.
In addition to its strong financial results, CleanSpark announced plans to acquire two Bitcoin mining locations in Wyoming, each with a power capacity of 75 megawatts, for $18.75 million in cash. Once operational, these sites are expected to contribute four exahashes per second of processing power to CleanSpark’s mining operations. The company aims to commence construction on these facilities shortly after the acquisition closes, with provisions for potential expansion by an additional 55 megawatts.
Following the positive developments, CleanSpark’s stock (ticker: CLSK) surged by 6% in early trading before settling to a 1.3% gain by the end of the day, just below its 10-day moving average. Shares continued to rise by 1.6% in after-hours trading.
Despite experiencing a decline from its peak on March 27, CleanSpark’s stock has seen significant gains year-to-date, rising by over 50%. Meanwhile, Bitcoin experienced a 1.2% increase in value over the last 24 hours, trading above $62,400 late Thursday. However, it remains down approximately 15% from its record high in March.