CleanSpark (CLSK) reported a significant increase in its stock on Thursday after beating earnings estimates for the quarter. This growth was fueled by the rising prices of bitcoin, which saw a slight rebound on Thursday after four consecutive days of declines.
CleanSpark’s revenue spiked by 163% to $11.8 million during the quarter, surpassing analyst expectations of $10.6 million. The company’s CEO, Zach Bradford, attributed the growth to the rise in bitcoin prices and CleanSpark’s increased operational capacity, which grew by over 60%.
CleanSpark also listed $358 million in bitcoin and $323.1 million in cash at the end of the quarter. The company 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 and have the possibility of expansion by an additional 55 megawatts.
The stock for CleanSpark initially surged by 6% in trading but settled for a 1.3% gain later in the day. Despite this decline from its March high of $24.72, shares are still up more than 50% year-to-date. Bitcoin itself rose by 1.2% in the last 24 hours, trading above $62,400 late Thursday despite being down by about 47% since its record high near $74,000 earlier this year but up about 15% from its lows near $49,000 last month.
In conclusion, CleanSpark’s strong financial performance and positive outlook is reflected not only in its stock price but also in Bitcoin’s upward trend as well as other cryptocurrencies that are closely tied to Bitcoin’s value movements.
