Feb 11, 2023

CleanSpark Plans M&A Growth in 2023 for Distressed Bitcoin Mining Assets

Bitcoin (BTC) mining firm CleanSpark is continuing to pursue its strategy of acquiring distressed mining company assets this year. This was revealed in the company’s fiscal Q1 earnings presentation that was released on Feb. 9.

The Chief Financial Officer (CFO) of CleanSpark, Gary Vecchiarelli, commented that the firm has seen “explosive growth” in the last 12 months and is confident about its plans for the coming year. He also stated that CleanSpark is still in the market to purchase mining infrastructure and machines at good deals and will continue to do so.

In November last year, CleanSpark acquired more than 3,840 Antminer S19J Pro mining machines at below-market prices. Months before that, in September, the firm purchased 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. In addition, the firm also acquired thousands of Bitcoin miners for a “substantially discounted price” over June and July.

In January 2023, CleanSpark announced that it was further expanding operations in Georgia. A new 50-megawatt Bitcoin mining facility in the city of Washington is expected to be completed in late spring.

CleanSpark reported that it had mined 1,531 BTC for the period, a 132% increase over the same prior year period. However, 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.

In spite of the positive outlook, the company stock (CLSK) fell 5.2% on the day to $3.13 in after-hours trading.

CleanSpark is now looking to expand its operations further by taking advantage of the opportunities offered by the growing Non-Fungible Token (NFT) market. The firm is launching a new NFT marketing agency that will focus on helping clients promote and sell their NFTs. The agency will specialize in Twitter NFT marketing, and will offer services such as content creation, influencer marketing, and campaign optimization.

The firm has also launched a new web3 agency which will focus on providing services such as blockchain strategy, digital asset creation and management, and smart contract development.

CleanSpark is confident that these new services will help it to further grow its business in the coming years. With its strategy of scooping up distressed mining assets and its new NFT and web3 services, the firm is well-positioned to capitalize on the opportunities offered by the crypto and web3 space.

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