Despite the ongoing crypto winter’s effect on the industry, CleanSpark (CLSK) Bitcoin miner declared its intent to search for expansion through accretive acquisitions of mining resources. Chief Financial Officer Gary Vecchiarelli commented Thursday during the company’s fiscal first-quarter earnings conference call: “We’re not obligated to pursue M&A activities; however, we will definitely take advantage of a great deal if spotted.” He believes that if Bitcoin’s price does not approach $40,000 by the time of its next halving event, this could prove an excellent opportunity for CleanSpark as many smaller miners – particularly private companies with limited access to capital markets – may be unable to remain viable.
CleanSpark Bought Bitcoin and Mining Equipment for Cheap in the Last Bear Market
In the turbulent bear market, CleanSpark seized a unique opportunity to acquire assets and mining machines at bargain prices as miners around them floundered from dropping Bitcoin rates and elevated energy costs. “We have been prudent buyers in this uncertain time,” Vecchiarelli proclaimed in Thursday’s statement; we are committed to making profitable acquisitions while efficiently utilizing our resources. “Our triumph in locating and finalizing transactions has enabled us to expand our share of the worldwide hash rate, as well as generate significant Bitcoin yields and cash flow while still settling a minimal amount of debt,” he continued.
On its earnings conference call, CleanSpark revealed it is looking to finance deals by selling mined Bitcoin’s and issuing equity. CEO Zach Bradford further mentioned that the company will ask for 300 million authorized shares at their annual meeting — triple the current 100 million share limit.
Bradford insisted that the company’s new equity may not be used, but it will allow them to do so when necessary to reach their development objectives. He noted on the conference call: “We trust this extra capital will empower us to not only retain our market share but generate growth just like we have done before.”
CleanSpark Is Looking for Additional Ways to Raise Capital
Moreover, CFO Vecchiarelli expressed the company’s intent to make lucrative acquisitions and has multiple options to do so, such as selling Bitcoin or equity. “I want to emphasize that when it comes to raising capital and utilizing those funds, we intend on being thorough yet decisive,” Vecchiarelli said.
On Thursday, an earnings statement revealed that the miner anticipates reaching 16 exahash per second (EH/s) of computing power by year-end. CleanSpark adjusted its 2023 hashrate goal to 16 EH/s from 22.4 EH/s due to a Lancium partner’s delay in constructing a mining facility. With this impressive target, the miner seeks immense success come year’s end!
CleanSpark reported first-quarter revenue of $27.8 million, which was lower than the average analyst predictions of $29.5 million, as per FactSet data. Subsequently, their shares dropped by 4.3% in post-market trading Thursday, while Bitcoin experienced a decline of 4.6%.
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