CLEANSPARK, INC. Annual Report - How They Did This Year

This past year, CLEANSPARK has been on a significant growth spurt, especially when it comes to expanding its Bitcoin mining operations. They've been busy acquiring new facilities and securing financing to fuel this expansion.

Major Moves & Growth: CLEANSPARK made several key acquisitions during the fiscal year ending September 30, 2024. They expanded their footprint by acquiring new sites in Wyoming in May and July 2024, another facility in Dalton in February 2024, and additional operations in Tennessee in September 2024. This shows a clear strategy to boost their mining capacity.

Looking ahead, the company isn't slowing down. They've already announced plans for more acquisitions in Georgia, with sites in Twin City (January 2025) and LaFayette (May 2025), and another acquisition related to LnEnergy LLC. They're also planning to purchase more Bitcoin miners to keep up with their growth ambitions, focusing on modular immersion and mobile data centers.

Financial Health & Funding: To support all this expansion, CLEANSPARK has been active on the financing front. They secured a new credit agreement with Western Alliance Bank in August 2024 and made adjustments to their credit agreement related to the Griid acquisition. After the fiscal year closed, they announced a new line of credit and some activity around their convertible notes in November 2025, indicating ongoing efforts to manage their capital. They also have various other financing arrangements in place, including a line of credit with Coinbase and convertible notes due in 2030.

Things to Watch Out For (Risk Factors): The company highlighted a potential risk related to customer concentration. For both the past fiscal year and the one before, a significant portion of their business involved Canaan US Inc. This means a large chunk of their accounts receivable came from this one vendor. They also mentioned a general revenue concentration risk for the upcoming year, which is something investors should be aware of as it could impact their financial stability if that relationship changes.

Key Takeaways:

• Aggressive Expansion: CLEANSPARK is actively growing its Bitcoin mining capacity through multiple facility acquisitions and plans for future purchases of miners and sites.
• Proactive Funding: The company is consistently securing and managing various financing arrangements, including new credit lines and convertible notes, to fuel its growth strategy.
• Concentration Risk: Investors should note the identified risk of customer and revenue concentration, particularly concerning Canaan US Inc.