Bitcoin Mining Stock CleanSpark Is Sliding Monday: What's Going On?

CleanSpark Inc CLSK shares are trading lower Monday on the heels of the company’s third-quarter financial results. Here’s what you need to know.

What To Know: After the market close on Friday, Bitcoin BTC/USD mining company CleanSpark reported third-quarter revenue of $104.11 million, missing analyst estimates of $110.88 million. The company reported an adjusted loss of 1 cent per share, beating analyst estimates for a loss of 4 cents per share, according to Benzinga Pro.

Total revenue was up 129% on a year-over-year basis. CleanSpark reported a 24% increase in hashrate during the quarter, bringing its hashrate above 22 EH/s. The company highlighted its 21% increase in efficiency year-to-date and noted that it believes it’s the most efficient large-scale publicly traded Bitcoin miner based on third-party data.

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“We have made a strategic decision to best position the company to thrive now and into the future, recognizing the need to maximize efficiency of our miners and operations. Specifically, we determined to replace a substantial portion of our fleet before the miners reached the end of their originally expected life cycle,” said Zach Bradford, CEO of CleanSpark.

“Although that decision has generated a non-cash expense that negatively affects our reported operating results for this quarter. We believe this is the most prudent step for the long-term success of the company.”

CleanSpark noted that it acquired a $50 million revolving line of credit from Coinbase Global Inc COIN to help the company continue to take advantage of opportunities in the marketplace. CleanSpark ended the quarter with $129.2 million in cash and $413 million in Bitcoin. The company had working capital of $531.9 million and $11 million in debt as of June 30.

Following the print, Cantor Fitzgerald analyst Brett Knoblauch maintained CleanSpark with an Overweight rating and lowered the price target from $28 to $23.

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CLSK Price Action: CleanSpark shares were down 3.93% at $11 at the time of publication, according to Benzinga Pro.

Photo: Eivind Pedersen from Pixabay.