Why CleanSpark (CLSK) Is Falling Today

CleanSpark Inc CLSK shares are trading lower by 7.49% to $3.00 during Friday's session. The company reported mixed first-quarter financial results.

What Happened?

CleanSpark reported quarterly losses of 46 cents per share which beat the analyst consensus estimate of a loss of 62 cents. The company also reported quarterly sales of $27.82 million, which missed the analyst consensus estimate of $30.01 million by 7.30%. This sales figure represents a 32.6% decrease over sales of $41.24 million in the same period last year.

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The company notably recognized a net loss for the three months ended December 31, 2022, of $29.0 million, compared to a net income of $14.5 million for the same prior year period.

Meanwhile, adjusted EBITDA decreased to a loss of $1.4 million, compared to adjusted EBITDA of $25.1 million from the same prior year period.

What Else?

"We have reliably grown, quarter over quarter, as we execute an operational strategy that we believe makes us one of the fastest growing, most reliable, and most efficient publicly traded bitcoin miners in North America," said Chief Executive Officer Zach Bradford.

"While we faced headwinds due to depressed bitcoin prices during most of our fiscal first quarter, we persisted and grew. Our average hashrate rapidly increased, outpacing global hashrate, and we mined the most bitcoin ever in a single quarter. Last month we had our highest monthly production ever, at nearly 700 bitcoins. We are starting to see all the hard work we put in during our last quarter pay off and we expect to continue to deliver on our goals as we work toward our calendar year end guidance of 16 EH/s."

Analyst Rating Updates

Additionally, CLSK received a number of analyst rating updates Friday including:

• HC Wainwright & Co. analyst Mike Colonnese reiterated with a Buy and maintained $12 price target.
• BTIG analyst Gregory Lewis maintained with a Buy and lowered the price target from $10 to $8.

According to data from Benzinga Pro, CLSK has a 52-week high of $13.91 and a 52-week low of $1.74.