CleanSpark (CLSK) reported a significant increase in its stock on Thursday after beating earnings estimates for the quarter, fueled by the rising prices of bitcoin. The cryptocurrency itself saw a slight rebound on Thursday after four consecutive days of declines.
CleanSpark’s revenue surged by 163% to $11.8 million, significantly exceeding analyst expectations of $10.6 million. This marks the third consecutive quarter of triple-digit revenue growth for CleanSpark, which attributed the growth to the rise in bitcoin prices. The company listed $358 million in bitcoin and $323.1 million in cash at the end of the quarter, indicating a strong financial position despite recent market volatility.
To further expand its operations, CleanSpark announced plans to acquire two bitcoin mining locations in Wyoming with 75 megawatts of power for $18.75 million, expected to close in 45 days. These sites will add four exahashes per second of processing power, with the possibility of expansion by an additional 55 megawatts, further strengthening its position as a major player in the cryptocurrency mining industry.
CleanSpark’s stock initially surged by 6% in trading before settling for a 1.3% gain later in the day, still up more than 50% year-to-date despite a decline from its March high of $24.72. Bitcoin itself rose by 1.2% in the last 24 hours, trading above $62,400 late Thursday after experiencing a decline from its record high near $74,000 earlier this year.
Overall, CleanSpark’s strong financial performance and expansion plans indicate that it is well-positioned to capitalize on ongoing demand for cryptocurrencies and take advantage of future market opportunities as they arise.
