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CleanSpark (NASDAQ:CLSK) is a relatively unknown Bitcoin (BTC-USD) miner competing in the crypto sector. It is undergoing the same struggles its peers are going through as a result of the continual downward pressure on the price of Bitcoin, and the FUD surrounding it.
That said, the company has been able to acquire more mining equipment at bargain prices, so if can survive the low-cost Bitcoin environment it’s now operating in, when the price of Bitcoin sustainably rebounds, it could potentially leverage the boost in price from the increase in the number of mining machines it employs at that time.
In this article we’ll look at its most recent earnings numbers and what the future may hold for the company and its shareholders.
Most recent earnings numbers
Revenue in Q2 jumped to $41.6 million, up more than 4x from the $8.1 million generated in Q2 of 2021. Mining revenues accounted for $37 million of the total. Management attributed much of those gains as a result of investments in infrastructure and mining equipment. The remaining $4.6 million came from its energy segment, which is, in my opinion, increasingly irrelevant to the company; CleanSpark should sell that unit and use the capital for operations.
Adjusted EBITDA from the prior quarter reveals how the low price of Bitcoin has had an impact on the company’s performance. EBITDA in Q2 dropped sequentially by $1.8 million, as a consequence of Bitcoin prices dropping and higher mining costs.
Year-over-year EBITDA was solid, jumping from $1.9 million last year in the same reporting period, to $22.5 million in Q2 2022. For the most part I’m discounting that because of the rapid erosion associated with weak macro-economic conditions and crypto markets.The plunge in the price of Bitcoin from Q1 2022 to Q2 2022 showed itself in the drop in net loss from a positive $14.5 million in Q1 to a loss of $170,000 in Q2. Until the price of Bitcoin sustainably reverses direction…
