Feb 11, 2023

CleanSpark Seeks Distressed Assets to Fuel Growth

CleanSpark, a Bitcoin (BTC) mining firm, has released its fiscal Q1 earnings presentation for 2023. The company 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.

Chief financial officer Gary Vecchiarelli said CleanSpark has seen “explosive growth” in the last 12 months and feels very comfortable with its plans. He added that its growth would continue into 2023 through mergers and acquisitions.

“We are still buyers in this market, and our strategy has not changed,” he said. “We don’t feel compelled to go out and have to do M&A. But obviously, if we see a good deal, we’ll take advantage of that.”

Vecchiarelli mentioned that smaller mining operations could potentially be in trouble, which is why the company wants to be in a position to be able to “pick off infrastructure and assets at good deals” similar to what it has done previously.

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

In early 2023, the company continued these expansion plans. 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.

The company is also looking to venture into the NFT space. It has already started to promote its NFTs on Twitter, and is looking to hire an NFT marketing agency to help with the promotion and selling of its NFTs.

The company is also looking to expand its web3 services. It has already started to build a web3 agency to provide services to companies looking to develop their products and services on the web3 platform.

Despite the positive outlook, company stock (CLSK) fell 5.2% on the day to $3.13 in after-hours trading. However, CleanSpark remains optimistic about the coming year and continued growth.

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