Feb 11, 2023
CleanSpark To Continue Acquiring Distressed Mining Assets in 2023
CleanSpark, a Bitcoin (BTC) mining firm, is looking to capitalize on the distressed mining market this year. The company released its fiscal Q1 earnings presentation on Feb. 9, revealing that it is optimistic about the coming year and continued growth.
Chief financial officer Gary Vecchiarelli said that CleanSpark has seen a “explosive growth” in the last 12 months and is confident in its plans. He added that its growth will continue into 2023 through mergers and acquisitions.
“We are still buyers in this market, and our strategy has not changed,” Vecchiarelli 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.”
The company has been on a buying spree, snatching up thousands of Bitcoin miners at a discounted price over the last few months. In November, it acquired more than 3,840 Antminer S19J Pro mining machines at a below-market price. Months before, in September, it 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 January, 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.
According to 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.
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.
Despite the positive outlook, company stock (CLSK) fell 5.2% on the day to $3.13 in after-hours trading.
As CleanSpark looks to continue its strategy of scooping up distressed mining company assets, the company is also looking to increase its presence in the web3 space. The firm is exploring ways to increase its presence in the NFT (Non-Fungible Token) market and has been working with a NFT marketing agency to promote its products on social media platforms such as Twitter.
In addition, CleanSpark is also looking to hire a web3 agency to help manage its NFT sales and promotion efforts. The company is looking to capitalize on the growing demand for NFTs and is looking to increase its presence in the market.
CleanSpark is confident that its strategy will continue to pay off and that it will be able to capitalize on the distressed mining market. The company is optimistic about the coming year and is looking to continue its growth through mergers and acquisitions.
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