Feb 10, 2023

CleanSpark Plans M&A Expansion in Distressed Mining Markets

CleanSpark, a Bitcoin (BTC) mining firm, is looking to continue its strategy of acquiring distressed mining company assets this year. The firm released its fiscal Q1 earnings presentation on Feb. 9, expressing optimism about the coming year and continued growth.

Chief financial officer Gary Vecchiarelli said CleanSpark has experienced “explosive growth” in the past 12 months and feels confident with its plans. He added that its growth would continue into 2023 through mergers and acquisitions, saying: “We are still buyers in this market, and our strategy has not changed.”

In November, the firm bought more than 3,840 Antminer S19J Pro mining machines at below-market prices. In September, it acquired Mawson’s Bitcoin mining facility in Sandersville, Georgia for $33 million as well as a 36-megawatt facility in the same state for $16.2 million. CleanSpark also purchased thousands of Bitcoin miners for a “substantially discounted price” over June and July.

In January, CleanSpark announced that it was further expanding operations in the state of Georgia. A new 50-megawatt Bitcoin mining facility in the city of Washington is expected to be completed in late spring.

In its fiscal Q1 earnings report, CleanSpark reported that it had mined 1,531 BTC for the period, a 132% increase over the same prior year period. Revenue had decreased 25% from the same period last year, falling to $27.8 million. Its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased to $1.4 million.

The company’s stock (CLSK) fell 5.2% on the day to $3.13 in after-hours trading.

CleanSpark is aiming to capitalize on the growing market of Non-Fungible Token (NFT) promotion and marketing. The company is already working with a web3 agency that specializes in NFT marketing, and plans to launch its own NFT marketing agency. The agency will offer a range of services, from creating custom NFTs to running Twitter NFT marketing campaigns.

The company also plans to launch its own NFT marketplace, where users will be able to buy, sell, and trade NFTs. The marketplace will feature a wide range of NFTs, from digital art to collectibles, and will be integrated with CleanSpark’s existing mining operations.

CleanSpark’s strategy of scooping up distressed mining company assets is expected to continue this year. The company is confident that its growth will continue into 2023, and it is well positioned to take advantage of the opportunities that come with the growing NFT market.

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