CLEANSPARK, INC. (CLSK)

CleanSpark, Inc. is a Nevada-incorporated, Nasdaq-listed bitcoin mining company that has operated in this sector since December 2020, mining bitcoin exclusively as its core business through itself and wholly owned subsidiaries including ATL Data Centers LLC, CleanBlok, Inc., CleanSpark DW, LLC, and CleanSpark GLP, LLC. Prior to June 30, 2022, the company also provided advanced energy technology solutions to commercial and residential customers, but it strategically discontinued these operations to focus solely on bitcoin mining, subsequently disposing of most related intellectual property while retaining gasifier technology patents. The company has expanded through acquisitions of data centers and mining equipment, including a second data center in August 2021, and additional facilities in Wilkes County and Sandersville, Georgia in August and October 2022, respectively (the "WAHA and SPRE Assets" and "Mawson Assets"), alongside a co-location agreement with Coinmint since July 2021.

As of the filing date, CleanSpark's operating mining units produce over 5.75 exahash per second of computing power, exceeding prior guidance, with plans for continued expansion through owned sites, acquisitions, and co-location agreements. Real property holdings are managed through additional subsidiaries such as CSRE Properties, LLC and related entities. Financially, the company reported bitcoin mining revenue of $130,999,686 for fiscal year 2022, a 237% increase from $38,846,633 in fiscal 2021, driven by a rise in bitcoin mined (3,752 vs. 899 bitcoin) despite a lower average bitcoin price, supported by an increase in mining equipment to approximately 42,000 units.

Cost of revenues rose sharply to $41,233,650, driven by higher energy and hosting costs, while payroll expenses increased to $40,920,163, largely due to a rise in stock-based compensation to $31,464,994. The company posted a net loss from continuing operations of $40,089,393, compared to $8,229,162 in the prior year, and an overall net loss of $57,326,354 for fiscal 2022, up from $21,812,010, reflecting increased depreciation, impairment expenses related to bitcoin holdings, and costs associated with discontinued operations. CleanSpark also uses non-GAAP adjusted EBITDA to evaluate performance, excluding non-cash and non-recurring items such as depreciation, share-based compensation, and impairment losses.

As of September 30, 2022, the company had 55,661,337 shares of common stock and 1,750,000 shares of preferred stock outstanding, up from 37,395,945 and 1,750,000 shares, respectively, in the prior year. The company continues to focus on expanding its mining infrastructure, pursuing strategic acquisitions, and maintaining sustainable and clean energy practices to support its bitcoin mining operations.