CleanSpark, Inc. (CLSK) - Q2 2026 Filing Summary
Business Context and Reporting Period
This summary covers CleanSpark, Inc.'s Form 10-Q for the quarterly period ended March 31, 2026. CleanSpark is a data center developer and infrastructure operator focused on bitcoin mining, with expanding initiatives in high-performance computing (HPC) and artificial intelligence (AI). As of March 31, 2026, the company operated a fleet of approximately 224,473 miners in service, generating an average hashrate of 47.3 EH/s.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2026 | Six Months Ended Mar 31, 2026 |
|---|---|---|
| Bitcoin Mining Revenue | $136.4 million | $317.6 million |
| Net Loss | $(378.3) million | $(757.1) million |
| Adjusted EBITDA (Non-GAAP) | $(241.2) million | $(536.6) million |
| Cash and Cash Equivalents | $260.3 million (as of Mar 31, 2026) | |
| Total Bitcoin Holdings (Fair Value) | ||
| Total Debt (Net of Discounts) | $1.79 billion (as of Mar 31, 2026) | |
| Working Capital |
Note: Figures are in thousands unless otherwise noted. Net loss includes significant non-cash unrealized losses on bitcoin fair value adjustments.
Material Changes vs. Prior Period
- Revenue Decline: Bitcoin mining revenue decreased 25% year-over-year for the quarter and 8% for the six-month period. This was driven by a lower average bitcoin price ($75,989 vs. $92,870 in Q2 2025) and a reduction in total bitcoin mined due to increased global network hashrate competition.
- Significant Net Loss: The company reported a net loss of $378.3 million for the quarter, compared to $138.8 million in the prior year quarter. The primary driver was a $224.1 million unrealized loss on the fair value of bitcoin holdings, reflecting the price drop from ~$87,500 to ~$68,200 per bitcoin.
- Increased Operating Costs: Depreciation and amortization increased 47% year-over-year to $115.9 million due to a larger fleet of miners in service. Professional fees surged 224% to $9.7 million, largely due to costs associated with developing HPC and AI initiatives.
- Debt Structure: The company issued $1.15 billion in 2032 Convertible Notes in November 2025. Total debt outstanding increased significantly to $1.79 billion, though the company maintains $400 million in unused lines of credit.
Guidance, Outlook, and Risks
- Strategic Pivot: Management is actively transitioning from a pure-play bitcoin miner to a diversified data center operator. Recent acquisitions in Texas (Brazoria and Austin Counties) and Tennessee are intended to support AI and HPC workloads, though no revenue from these segments was recognized in the period.
- Treasury Management: The company employs a "Digital Asset Management" (DAM) strategy, utilizing derivatives (calls, puts, forwards) to generate liquidity and premiums without selling core bitcoin holdings. This generated approximately $17.2 million in premium proceeds over the six-month period.
- Key Risks:
- Bitcoin Volatility: A 10% change in bitcoin price would impact the fair value of holdings by approximately $104 million.
- Tariff Exposure: The company faces potential import tariff liabilities of up to $130 million regarding miners imported in 2024, though it is actively contesting these claims.
- Litigation: Ongoing class action and derivative lawsuits regarding past acquisitions and corporate governance remain pending with uncertain outcomes.
Investor Verification Checklist
- Verify the status of the U.S. Customs and Border Protection tariff protests regarding the potential $130 million liability.
- Review the conversion terms and covenants of the newly issued $1.15 billion 2032 Convertible Notes.
- Monitor progress on AI/HPC lease agreements in Texas and Tennessee to assess the viability of the diversification strategy.
- Assess the impact of bitcoin price volatility on the company's balance sheet, given the significant unrealized losses recorded in the period.
- Confirm the uptime and efficiency metrics of the miner fleet relative to the rising global hashrate.