Small-cap cryptocurrency miner CleanSpark (NASDAQ: $CLSK) has reported first-quarter financial results that disappointed Wall Street, sending its stock lower as a result.
The Bitcoin (CRYPTO: $BTC) mining company reported a net loss of $378.3 million U.S. for the quarter ended March 31, a steep increase from the $138.8 million U.S. loss reported a year ago.
The loss of $1.52 U.S. per share was more than triple the analyst estimate of a $0.41 U.S. loss.
More From Cryptoprowl:
The poor showing was due largely to a $224.1 million U.S. Bitcoin fair value loss, reflecting volatility in the cryptocurrency market.
Quarterly revenue totaled $136.4 million U.S., down 25% from $181.7 million U.S. a year earlier, and missing consensus estimates of $154.3 million U.S.
On a positive note, CleanSpark said that it expanded its infrastructure, doubling its megawatts (MW) under contract.
Management emphasized on an earnings call with analysts and media that CleanSpark is shifting toward leasing computing power and artificial intelligence (A.I.) data centres.
Executives also trumpeted that the company’s Bitcoin holdings increased 14% to $925.2 million U.S. year-over-year in the first quarter.
CleanSpark had cash on hand of $260.3 million U.S. at quarter’s end, while total assets now at $2.90 billion U.S. with long-term debt of $1.80 billion U.S.
A market capitalization of $3.66 billion U.S. places CleanSpark in the small-cap stock category, defined as any security with a market value below $10 billion U.S.
CLSK stock is down 7% on May 12 after reporting its latest financial results. Over the past 12 months, the company’s share price has risen 38% to trade at $13.28 U.S.
