CleanSpark has reported a $239 million quarterly loss as revenue fell 30.5% year over year, while its latest AI data center lease has added a long-term revenue stream outside Bitcoin mining.
Summary
- CleanSpark reported a $239 million quarterly net loss as revenue fell 30.5% year over year.
- Quarterly revenue came in at $138 million, missing analysts’ estimates compiled by Yahoo Finance.
- The company signed a 20 year lease expected to generate $6.6 billion from its Georgia AI data center.
- CleanSpark continued expanding its AI infrastructure while maintaining its Bitcoin mining operations.
According to CleanSpark’s fiscal third-quarter results published on Thursday, the Nasdaq-listed Bitcoin mining company generated $138 million in revenue for the three months ended June 30, down 30.5% from $198 million in the same quarter last year. The figure also came in below Wall Street expectations, with Yahoo Finance analyst estimates placing the consensus forecast at $142.2 million.
For the quarter, the company posted a net loss of $239 million, or $0.89 per basic share, reversing from net income of $257 million, or $0.90 per share, recorded a year earlier.
The earnings release arrived after the company had already reported another loss-making quarter in May. For the fiscal second quarter ended March 31, CleanSpark reported a net loss of $378.3 million on revenue of $136.4 million, compared with a loss of $138.8 million and revenue of $181.7 million in the prior-year period.
CleanSpark revenue has missed analyst estimates
Alongside the decline in revenue, CleanSpark’s quarterly sales narrowly missed analysts’ expectations compiled by Yahoo Finance.
Investors reacted by sending the stock lower. Shares fell 5.5% during Thursday’s trading session before recovering about 3% in pre-market trading on Friday to trade above $13.10, according to Yahoo Finance market data.
The latest earnings follow a similar market reaction after the previous quarterly report. Following the May results, CleanSpark shares dropped more than 10% in pre-market trading after closing the previous session at $14.30. Google Finance data at the time showed the company carried a market capitalization of about $3.66 billion, with shares trading within a 52-week range of $8.00 to $23.61.
AI infrastructure has become part of CleanSpark’s strategy
Even as its Bitcoin mining business has faced weaker financial results, CleanSpark has continued expanding into artificial intelligence and high-performance computing infrastructure.
On July 14, the company signed a 20-year lease for a 175-megawatt data center at its Sandersville, Georgia, campus with an undisclosed investment-grade global technology company. CleanSpark estimated the agreement would generate about $6.6 billion in contracted revenue over the initial lease term.
Development at the Sandersville campus has been underway for several quarters. Earlier this year, the company said it had doubled its contracted megawatts from a year earlier while securing 585 megawatts of ERCOT-approved capacity in Texas to support additional AI and HPC projects.
During the May earnings release, chief executive Matt Schultz said the company planned to commercialize assets suitable for AI and HPC workloads while continuing to operate its Bitcoin mining business efficiently.
Bitcoin holdings have continued growing despite losses
Although quarterly earnings remained under pressure, CleanSpark continued adding Bitcoin to its balance sheet.
During the fiscal second quarter, the company said its Bitcoin holdings increased 14% from a year earlier while average monthly hashrate climbed 18%. It ended that quarter holding $925.2 million worth of Bitcoin alongside $260.3 million in cash.
The company also disclosed that a $224.1 million fair value loss on its Bitcoin holdings accounted for nearly 60% of its total net loss during the March quarter, following weaker Bitcoin prices during the reporting period.
Bitcoin miners have expanded into AI data centers
CleanSpark is not the only publicly traded Bitcoin miner adding AI infrastructure alongside mining operations.
Several companies across the sector have reported similar changes while dealing with earnings pressure tied to digital asset accounting.
MARA, for example, reported a $1.3 billion first-quarter loss after mark-to-market adjustments affected the value of its Bitcoin treasury.
TeraWulf separately reported that revenue from high-performance computing exceeded Bitcoin mining revenue for the first time during the first quarter, illustrating how AI-related infrastructure has become a larger contributor to its business.
Core Scientific has also increased its exposure to colocation services. As previously reported by crypto.news, the company posted a $347.2 million first-quarter loss while reporting a significant increase in colocation revenue as more capacity was allocated to AI infrastructure.
