CleanSpark Surges in Revenue and Earnings on the Rise of Bitcoin Prices: Bitcoin Still Struggles to Find Its Footing Amid Declines

CleanSpark (CLSK) reported a significant increase in revenue and earnings, fueled by the rise in bitcoin prices. The company’s stock surged on Thursday after beating its earnings estimates for the quarter.

CleanSpark reported earnings of 58 cents per share, a marked improvement from a loss of 23 cents per share in the previous year. Revenue also spiked by 163% to $11.8 million, exceeding analyst expectations of $10.6 million. This marks the third consecutive quarter of triple-digit revenue growth for CleanSpark.

The CEO attributed this growth to the rise in bitcoin prices. CleanSpark also listed $358 million in bitcoin and $323.1 million in cash at the end of the quarter. The company 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.

Bitcoin itself saw a slight rebound on Thursday after four consecutive days of declines, rising by 1.2% in the last 24 hours to trade above $62,400 late Thursday. Although Bitcoin has surged by about 47% this year, it is down by 15% from its record high near $74,000 in March.

CleanSpark’s stock initially surged by 6% before settling for a smaller gain of only 1%. Despite this decline, shares are still up more than 50% year-to-date due to their surge earlier this month.

In summary, CleanSpark’s strong performance was driven by rising bitcoin prices and operational capacity expansion while Bitcoin saw a slight rebound but is still down from its record highs despite an overall upward trend this year