CleanSpark (CLSK), a bitcoin miner, is looking for growth through accretive acquisitions of mining assets as the crypto winter continues to weigh on the industry. Chief Financial Officer Gary Vecchiarelli said that the company will take advantage of good deals, and that if bitcoin’s price doesn’t get close to $40,000 before the next halving event, there will be plenty of opportunities for CleanSpark. During the bear market, CleanSpark took the opportunity to buy assets and mining machines at a lower cost. With the company’s focus on acquisitions, CleanSpark is well-positioned to capitalize on the current market conditions and emerge as a leader in the bitcoin mining industry.
CleanSpark, a software and services company focused on the energy industry, is expanding its presence in the cryptocurrency mining market. The company has been actively acquiring mining operations and has been successful in sourcing and closing transactions that grow its percentage of the total global hash rate. CleanSpark is looking to finance potential deals by selling mined bitcoins and issuing equity, and is seeking to raise the number of authorized shares for issuance from 100 million to 300 million at its upcoming annual meeting. The company’s CEO, Zach Bradford, believes that this expansion into the cryptocurrency mining market will produce meaningful bitcoin and cash flow while still paying down the company’s debt.
Coinbase, a leading cryptocurrency exchange, recently announced that it has authorized an increase in its share count from 115 million to 200 million. This move gives the company the flexibility to use equity, if needed, to reach its targeted growth. CFO Vecchiarelli said the company is looking to make accretive acquisitions and has several options to do so, including selling bitcoin and equity. Coinbase will remain methodical and calculated when raising capital and deploying that capital.
CleanSpark, a bitcoin miner, reported fiscal first-quarter revenue of $27.8 million, which was lower than the average analyst estimate of $29.5 million. The miner expects to reach its year-end hashrate guidance of 16 exahash per second (EH/s), but has adjusted its 2023 year-end hashrate view to 16 EH/s from 22.4 EH/s due to a delay in building a mining facility. The shares of the miner were down about 4.3% in post-market trading Thursday, while bitcoin fell 4.6% over the last 24 hours. CleanSpark’s lower-than-expected revenue and hashrate guidance caused its shares to drop in post-market trading.
