Bitcoin Mining Operations Leveraging Energy Savings to Drive Profits
|52 Week Range||$1.25-$42.60|
|Avg. Daily Vol. (30 day)||3,024,483|
|Shares Out (MM)||33.9|
|Market Cap (MM)||$750.40|
|Insiders Own %||9%|
|Short Int./% of Float||1,680k / 5.2%|
|Debt to Equity||3%|
|Revenue TTM (MM)||$11|
|Fiscal Year End||September|
- Bitcoin mining is central to the bitcoin ecosystem. It is a process that verifies transactions and provides security to the bitcoin blockchain, and it is how new bitcoins enter circulation. CleanSpark entered into this rapidly growing market through its acquisition of ATL Data Centers in December 2020.
- CleanSpark is focused on expanding its bitcoin mining operation and has secured the contracts necessary to increase its hashrate from 315 PH/s as of March 2021 to more than 1.1 EH/s by August 2021.
- The company recently ordered 22,680 additional bitcoin miners representing an incremental 2.2 EH/s of capacity and expects these new units will increase its total production capacity to over 3.2 EH/s by September 2022.
- At current difficulty rates, 1.1 EH/s would represent 6-7 bitcoins per day and 3.2 EH/s would represent 18-20 bitcoins per day.
- CleanSpark expects the growth from 1.1 EH/s to 3.2 EH/s to occur at an average rate of 160 PH/s per month from September 2021 to September 2022. This is approximately equivalent to increasing its bitcoin production by one additional bitcoin per day every month.
- The company produced more than 144 bitcoins in 2Q21 and has produced 205 bitcoins since the ATL acquisition. As of April 18, 2021, CleanSpark held more than 143 bitcoins on its balance sheet, all of which were produced by its mining operation.
- Management expects that revenue from bitcoin mining will grow significantly in the coming quarters on the back of expanded hashrate capacity, and over the long term, expects this business to generate more than $325 million in annual revenue assuming total production capacity of 3.2 EH/s and $50,000 per bitcoin.
CleanSpark, Inc. (CLSK) is a software and services company providing advanced energy software and control technology that enables a plug-and-play and end-to-end enterprise energy solution in microgrid and distributed energy resource (DER) settings as well as hardware systems, specifically switch gear and energy storage solutions. The company also engages in bitcoin mining.
Central to the energy software and control technology business is an integrated software suite comprised of mPulse and mVSO, with the core function of enabling a user to accurately model and intelligently manage a complex microgrid. CleanSpark’s software solutions can be widely implemented across commercial, industrial, military, and municipal organizations. In terms of revenue breakdown, although the hardware business accounts for the bulk (~48% as of 1Q21) of the company’s revenue, it carries low margins (~10%) while the software solutions and the newly launched bitcoin mining operation carry exceptional margins of ~80%. It is expected that in 2Q21 and in future periods, the higher margin revenues will begin to exceed 50-80% of total revenue.
Bitcoin mining is central to the bitcoin ecosystem. It is a process that verifies transactions and provides security to the bitcoin blockchain, and it is how new bitcoins enter circulation. CleanSpark entered into this rapidly growing market through its acquisition of ATL Data Centers in December 2020.
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