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CleanSpark posts sharp loss swing as Bitcoin valuation reverses

The miner reported a 30.5% year-over-year revenue drop in fiscal Q3, and Bitcoin fair-value and collateral valuation changes accounted for about $432.8 million of the net income reversal’s magnitude.

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CleanSpark reported fiscal third-quarter results showing a steep deterioration in profitability, including a 30.5% year-over-year revenue decline to $138.0 million and a swing from profit to loss, as detailed in its filing reviewed by CryptoSlate.

Over the same quarter, the company recorded a $257.4 million profit that reversed to a $239.8 million loss, with Bitcoin valuation-line movements driving much of the change, according to the 10-Q.

CleanSpark’s disclosure showed one Bitcoin fair-value line shifting by $384.9 million, from a $268.7 million gain to a $116.3 million loss. A separate $31.4 million Bitcoin collateral gain moved to a $16.5 million loss, a $47.9 million swing, and together the two valuation shifts totaled $432.8 million, about 87% of the net-income reversal in magnitude.

CryptoSlate also noted that while the cash-flow statement was less severe than the income statement, CleanSpark still used cash and faces financing stakes tied to its Sandersville AI lease. The company reported $409.3 million of operating cash use in the first nine months of the fiscal year, and management said the project’s anticipated equity portion was fully funded, but CleanSpark still needs substantial additional capital and expects significant added in the future.

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