CleanSpark Releases December 2024 Bitcoin Mining Update

Rhea-AI Summary

CleanSpark (CLSK) released its December 2024 bitcoin mining update, reporting 668 bitcoin mined in December and a total of 7,024 bitcoin produced in 2024. The company achieved significant growth with a 287.9% hashrate increase and 33.3% efficiency improvement year over year, reaching 39.1 EH/s operating hashrate by year-end.

Key operational highlights include a $650 million zero-coupon convertible notes offering, expansion into three new states, and completion of multiple site expansions. The company's bitcoin holdings stood at 9,952 as of December 31, with only 12.65 bitcoin sold during December at an average price of $101,246.

Notable developments include fully operational facilities in Clinton, Mississippi (1 EH/s), progress in Jackson, Tennessee (projected 3.7 EH/s), and advancement in Cheyenne, Wyoming (expected 5 EH/s). The company aims to achieve 50 EH/s by mid-2025.

Positive

• Achieved 39.1 EH/s operating hashrate, surpassing year-end guidance
• Secured $650M zero-coupon convertible notes for growth funding
• Improved fleet efficiency to 17.59 J/Th
• Produced 7,024 bitcoin in 2024
• Holds 9,952 bitcoin in treasury
• Average bitcoin sale price of $101,246 in December

Negative

• Reduced bitcoin production to 668 in December from average of ~585 monthly
• Operating at only 35.52 EH/s average despite 39.1 EH/s capacity

Insights

Financial Analyst

The December update reveals exceptional operational execution and financial positioning. $650M zero-coupon convertible notes provide significant strategic flexibility without immediate interest burden. Mining 668 BTC in December at $101,246 average sale price demonstrates strong revenue generation. The 39.1 EH/s hashrate achievement surpassed guidance, positioning CleanSpark among top-tier U.S. miners. Fleet efficiency improvement to 17.59 J/Th indicates superior operational optimization, directly impacting profit margins. The strategic expansion across three states diversifies operational risk while maintaining aggressive growth trajectory toward 50 EH/s by mid-2025. Bitcoin treasury of 9,952 BTC represents substantial balance sheet strength at current prices. The minimal bitcoin sales of just 12.65 BTC suggests strong cash position and strategic hodling approach.

Energy Infrastructure Expert

The operational metrics showcase remarkable infrastructure optimization. Achieving 853 MW under contract with a 33.3% year-over-year efficiency improvement demonstrates masterful power management. The diversification into immersion cooling technology in Wyoming and Tennessee represents cutting-edge infrastructure development, potentially reducing cooling costs by 20-30% compared to traditional air cooling. The rapid 6-month deployment in Cheyenne proves exceptional project execution capabilities. The strategic selection of locations in Mississippi, Tennessee and Wyoming suggests access to competitive power rates and favorable regulatory environments. The 17.59 J/Th efficiency places CleanSpark among industry leaders in power utilization effectiveness.

Market Research Analyst

The market positioning revealed in this update is strategically significant. CleanSpark has executed a textbook example of vertical scaling while maintaining operational efficiency. The 287.9% hashrate growth outpaces industry averages, indicating market share gains. The zero-coupon convertible offering structure is particularly shrewd, eliminating immediate interest expenses while providing substantial growth capital. The combination of immersion and air-cooled facilities demonstrates technological diversification, reducing single-point failure risks. The 201,808 deployed fleet size and consistent daily production of 21.56 bitcoin indicate robust operational stability. Market timing for expansion appears optimal with the upcoming Bitcoin halving, positioning CleanSpark to capitalize on potential price appreciation while operating at peak efficiency.

Mines 668 bitcoin in December and 7,024 bitcoin in 2024

287.9% hashrate growth with 33.3% efficiency improvement year over year

LAS VEGAS, Jan. 6, 2025 /PRNewswire/ -- CleanSpark Inc. (Nasdaq: CLSK), America's Bitcoin Miner® (the "Company"), today released its unaudited bitcoin mining and operations update for the month ending December 31, 2024.

"2024 marked a transformative year for CleanSpark, where we achieved true escape velocity in our industry," said Zach Bradford, CEO and President of CleanSpark. "We have firmly established ourselves as a U.S. leader in operational hashrate, cost-efficiency, fleet performance, bitcoin treasury management, and portfolio-wide uptime. Surpassing our year-end guidance, we reached an impressive 39.1 EH/s and enhanced fleet efficiency to under 17.6 J/Th ahead of schedule. We strategically expanded into three new states—Mississippi, Tennessee, and Wyoming—while completing multiple site expansions. Notably, we crossed a historic milestone by mining our 20,000th bitcoin, a testament to our operational excellence since mining our first bitcoin just four years ago. With the successful closing of a $650 million zero-coupon convertible bond offering in December, we are fully equipped to execute our strategic objectives. As we gear up to achieve 50 EH/s by mid-2025, our growth strategy is not only ambitious but fully funded, positioning CleanSpark to lead the industry into its next phase of innovation and scale."

December Bitcoin Mining Update (unaudited)

• Bitcoin produced in December: 668
• Total bitcoin holdings as of December 31: 9,952
• Month-end operating hashrate: 39.1 EH/s
• MW under contract: 853 MW¹
• Month-end fleet efficiency: 17.59 J/Th
• Total bitcoin sold in December: 12.65
• Deployed fleet: 201,808
• CY2024 bitcoin produced: 7,024

Throughout December 2024, the Company's average hashrate was 35.52 EH/s and average fleet efficiency was 18.06 J/Th, resulting in an average of 21.56 bitcoin mined daily. The single day high reached 22.46 bitcoin. The Company sold 12.65 bitcoin during December 2024 at an average price of approximately $101,246 per bitcoin.

¹MW includes all contracted power capacity for wholly owned sites and excludes contracted capacity through hosting agreements and/or other non-binding arrangements.

Additional Updates
Convertible Notes Offering. CleanSpark announced the closing of $650 million zero-coupon convertible notes to support its growth through 50 EH/s, a stock buy-back and a capped call.

Clinton, Mississippi. Two bitcoin mining facilities near Clinton are now fully operational, housing S21 Pro miners with a combined operating hashrate of approximately 1 EH/s.

Jackson, Tennessee. The first phase of the Company's 60 MW bitcoin mining site in Jackson has been successfully completed, featuring an initial 12 MW of the latest generation S21 XP Immersion miners. The second phase, currently underway, will bring an additional 48 MW of air-cooled S21 Pro miners online. Once fully operational, the site is projected to add approximately 3.7 EH/s to CleanSpark's overall hashrate.

Cheyenne, Wyoming: By year-end, S21 XP Immersion miners delivering 1 EH/s were energized as part of CleanSpark's rapidly advancing construction of 75 MW of immersion-cooled bitcoin mining data centers. This milestone highlights the Company's efficient development capabilities, with the initial phase completed less than six months after closing. The full 75 MW is on track for completion in Q1 2025 and is expected to contribute a total of 5 EH/s of CleanSpark's most efficient hashrate.

About CleanSpark
CleanSpark (Nasdaq: CLSK), America's Bitcoin Miner®, is a market-leading, pure play Bitcoin miner with a proven track record of success. We own and operate a portfolio of mining facilities across the United States powered by globally competitive energy prices. Sitting at the intersection of Bitcoin, energy, operational excellence and capital stewardship, we optimize our mining facilities to deliver superior returns to our shareholders. Monetizing low-cost, high reliability energy by securing the most important finite, global asset – Bitcoin – positions us to prosper in an ever-changing world. Visit our website at www.cleanspark.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: completion and performance of Phase II in Jackson, TN; completion and performance of Cheyenne, WY data center; anticipated additions and targets to CleanSpark's hashrate and the timing thereof; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company's prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law.

Investor Relations Contact 
Harry Sudock
702-989-7692
ir@cleanspark.com

Media Contact
Eleni Stylianou
702-989-7694
pr@cleanspark.com

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SOURCE CleanSpark, Inc.

FAQ

How many bitcoin did CLSK mine in December 2024?

CleanSpark mined 668 bitcoin in December 2024, with a daily average of 21.56 bitcoin.

What is CLSK's current operating hashrate as of December 2024?

CleanSpark's operating hashrate reached 39.1 EH/s by the end of December 2024.

How many bitcoin does CLSK hold in its treasury?

As of December 31, 2024, CleanSpark held 9,952 bitcoin in its treasury.

What was the size of CLSK's convertible notes offering in December 2024?

CleanSpark closed a $650 million zero-coupon convertible notes offering in December 2024.

What is CLSK's hashrate target for mid-2025?

CleanSpark aims to achieve 50 EH/s by mid-2025.

How many bitcoin did CLSK sell in December 2024?

CleanSpark sold 12.65 bitcoin in December 2024 at an average price of approximately $101,246 per bitcoin.