Stock of the Day: CleanSpark (NASDAQ: CLSK) Reports Strong Q1 FY2025 Results

FutureGate | February 11 2025

CleanSpark delivered an impressive Q1 FY2025, with revenue surging 120% year-over-year to $162.3 million. The company achieved a robust 57% gross margin and a remarkable net income of $241.7 million, translating to $0.85 EPS, a significant jump from $25.9 million and $0.14 EPS in Q1 FY2024.

Operational Growth & Bitcoin Mining Efficiency

CleanSpark continues to scale its Bitcoin mining operations efficiently. The company's cost to mine Bitcoin declined by 6% to $34,000 per BTC, improving overall profitability. Its Bitcoin treasury now exceeds 10,500 self-mined BTC, all produced within the U.S. The firm has surpassed 40 EH/s hashrate, with a target of 50 EH/s by mid-2025, while improving fleet energy efficiency to 16.15 J/Th. Expansion efforts are focused on Wyoming, Tennessee, and Georgia to support future growth.

Financial Strength & Strategic Investments

CleanSpark maintains a strong balance sheet with $276.6 million in cash, a Bitcoin treasury valued at $929.1 million, and total assets of $2.8 billion. The company holds $1.2 billion in working capital, with a market cap of $3.14 billion.

To fuel its expansion, CleanSpark raised $650 million via a convertible bond and remains committed to mining Bitcoin at $34,000 per BTC rather than purchasing at market rates, reinforcing its long-term growth strategy.

Outlook

CleanSpark's aggressive expansion, improving efficiency, and growing Bitcoin reserves position it as a leading player in the Bitcoin mining space. With continued infrastructure investments and strategic treasury management, the company remains well-positioned for sustained growth.