CleanSpark Suffers $239M Loss as Bitcoin Impairment and Revenue Decline Bite
CleanSpark Inc., a Nasdaq-listed Bitcoin mining and data center operator, reported a significant decline in its fiscal third-quarter earnings. The company posted a net loss of $239 million as a result of a $116.25 million impairment charge on its Bitcoin holdings and a 30.5% drop in revenue.
The revenue figure of $138 million for the three months ended June 30 narrowly missed the consensus analyst estimate of $142.2 million compiled by Yahoo Finance, causing shares to fall 5.5% during Thursday's trading session.
CleanSpark's President and Chief Financial Officer, Gary Vecchiarelli, noted that Bitcoin mining profitability remained under pressure, contributing to the revenue decline. The company's total Bitcoin holdings were valued at $810 million as of June 30.