CleanSpark, Inc. Q4 FY2025 earnings call

• Matt Shultz returned as CEO, focusing on Bitcoin mining and evolving into a digital infrastructure platform for various compute opportunities.
• Achieved 50 exahash per second in operational hash rate with 100% U.S.-based infrastructure. Recorded record revenues and no equity offerings in 2025.
• Deploying 19,000 S21X XP immersion units with 13.5 joules per terahash, expected to complete in 2026. Prioritized portfolio review to ensure no AI applicable megawatts consumed.
• Secured over a gigawatt of power under contract, nearly 300 megawatts in Texas scheduled to energize in early 2027, and a multi-gigawatt pipeline of opportunities.
• MOU with Submer for liquid-cooled and prefabricated data center solutions to enhance energy efficiency and sustainability.
• Issued $1.15 billion upsized 0% convertible note, used proceeds to buy back $460 million in stock and pay off lines of credit.

CleanSpark achieved record revenues of $766 million in fiscal 2025. Gross margin was 55%, a 1% decrease year over year due to the first full year post-halving. Bitcoin treasury grew by nearly 62% to over 13,000, generated from wholly owned and operated hash rate. Bitcoin mining remains foundational, but the company is evolving into a digital infrastructure platform for AI, generative AI, etc., with revenue contribution from Bitcoin mining being the primary segment.

• Expect professional fees, payroll, and G&A to increase with AI strategy execution.
• AI data center business offers stable cash flows and high margins, aiding through Bitcoin mining peaks and valleys.
• Digital asset management strategies (Spot Plus and Yield) using covered calls generate premiums, with potential to increase annualized yield.
• Plan to expand digital asset management team for more complex derivative trades.

• Punitive tax treatment on Bitcoin sales due to low basis of mined Bitcoins.
• Delays in deployment timeline for immersion units longer than initially contemplated.
• Competition and execution risks in aligning AI data center development with tenant needs and market demands.

Q: There's been volatility in stocks. Could you provide color on conversations with potential clients and outlook for HPC AI space over the next two years?

A: Had extensive conversations with potential clients, including NVIDIA, with strong interest in Sandersville and Sealy sites. Feel optimistic about demand despite peer challenges due to strong balance sheet and cash flow.

Q: Thoughts on pairing Bitcoin mining with HPC campuses?

A: See it as a dual-pronged strategy, with utilities expressing interest in blending AI, HPC, and Bitcoin mining for interruptible load capabilities.

Q: Key development milestones in 2026 for HPC strategy?

A: Focus on securing tenants for Sandersville and Houston sites, with Submer partnership aiding speed to market. Hyperscaler demand for quick delivery of megawatts.

Q: Near-term expansion plans for Bitcoin mining?

A: Migration of Bitcoin mining to remote locations with favorable utility rates, deployment of additional S21X immersion miners, and fleet upgrades in a disciplined manner.