CleanSpark Inc (CLSK) shares took a dip on Monday following the release of the company’s third-quarter financial results. While the company fell short of revenue expectations, it surpassed analyst estimates for earnings per share. This performance comes amidst a period of strategic growth for CleanSpark.
The company reported third-quarter revenue of $104.11 million, missing analyst estimates of $110.88 million. However, CleanSpark managed to report an adjusted loss of 1 cent per share, beating the anticipated loss of 4 cents per share. Notably, total revenue saw a substantial year-over-year increase of 129%.
CleanSpark also highlighted its impressive progress in efficiency and hashrate. During the quarter, the company achieved a 24% increase in hashrate, bringing its total hashrate above 22 EH/s. CleanSpark emphasized its year-to-date efficiency gains, noting a 21% increase. This achievement positions the company as the most efficient large-scale publicly traded Bitcoin miner based on third-party data.
CleanSpark CEO Zach Bradford explained the company’s strategic decision to replace a portion of its mining fleet before the end of their expected lifecycle. This move, while generating a non-cash expense that negatively impacted this quarter’s reported operating results, is considered a prudent step for the long-term success of the company.
Further bolstering its growth strategy, CleanSpark secured a $50 million revolving line of credit from Coinbase Global Inc (COIN). This credit facility allows the company to capitalize on emerging opportunities in the market.
As of June 30, CleanSpark held $129.2 million in cash and $413 million in Bitcoin. The company reported working capital of $531.9 million and $11 million in debt.
Following the earnings release, Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating for CleanSpark, but lowered the price target from $28 to $23.
At the time of publication, CleanSpark shares were down 3.93% at $11.
