CleanSpark Inc reported it made $14.5 million in net income during its first quarter of fiscal 2022.
Net income for the three months ended December 31, 2021, was $0.35 basic income per share compared to a loss of $7.2 million or $0.32 per share for the same prior-year period.
The company also had working capital of $36.2 million and no long-term debt at the close of 2021.
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"December 16th marked our one-year anniversary of sustainable Bitcoin mining and since then we have brought the company to record revenues and profit," said CleanSpark CEO Zach Bradford in a statement. "As of the date of this release, we have 20,900 machines in operation with a total hashrate exceeding 2.1 EH/s and producing approximately 10 bitcoin per day.
He added: "Given our success with bitcoin mining, CleanSpark is considering strategic alternatives for our legacy energy business. Focusing our efforts on our bitcoin mining segment allows the company to capitalize on the tremendous opportunity bitcoin presents. We look forward to sharing our corporate vision on our first-quarter earnings call and discussing the strategic pillars we believe are crucial to our long-term success."
CFO Gary Vecchiarelli said the company’s strong financial results are evidence of the operating leverage of its business model.
"Gross margins remain high at almost 80%, and much of that profitability translates to the bottom line as we saw $14.5m of net income and $24.1m of Adjusted EBITDA, which represents net margins of approximately 35% and 58%, respectively,” he said.
“CleanSpark also has zero long-term debt, and we will be looking to use our strong balance sheet and operating cash flows as a springboard for future growth expansion."
Other 1Q financial highlights include:
- Increased its quarterly revenues to $41.2 million, a jump of $38.9 million versus $2.3 million for the same prior-year period.
- Saw substantial sequential revenue growth -- increased $14.1 million or 52% from the 4Q.
In addition, balance sheet highlights as of December 31, 2021, include:
- Cash: $5.2 million
- Digital Currency: $30.2 million
- Total Current assets: $58.7 million
- Total Mining assets (including prepaid deposits & deployed miners): $286.9 million
- Total Assets: $418.1 million
- Current Liabilities: $22.5 million
- Total Liabilities: $24.1 million
- Total Stockholders' Equity: $394.1 million
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